Problem: M Company borrowed $50,000 cash on April 1, and signed a one-year 12%, interest-bearing note payable. The interest and principal due on March 31 of the following year will be: a. $50,000 b. $51,500 c. $54,000 d. $56,000

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M Company borrowed $50,000 cash on April 1, and signed a one-year 12%, interest-bearing note payable. The interest and principal due on March 31 of the following year will be:

a. $50,000

b. $51,500

c. $54,000

d. $56,000