What will be recorded on the worksheet as interest due for a new private loan of $250,000.00 at 9%?

To determine the interest due for a new private loan of $250,000.00 at an interest rate of 9%, first, you need to calculate the total interest for a specific period, typically one month unless stated otherwise.

The annual interest can be calculated using the formula:

Annual Interest = Principal Amount × Interest Rate

For this loan:

Annual Interest = $250,000.00 × 0.09 = $22,500.00

To find the monthly interest, divide the annual interest by 12:

Monthly Interest = Annual Interest / 12

Monthly Interest = $22,500.00 / 12 = $1,875.00

Recording it on the worksheet means that the accounts of the buyer and the broker are affected. The buyer incurs this interest as a debit to their account indicating that they owe this amount. At the same time, the broker's account is credited with the same amount, reflecting the income due to the broker from the loan.

Therefore, the correct entry involves debiting $1,875.00 to the buyer's account and crediting the broker's account with the same amount, which corresponds to the amount calculated for monthly interest.

Thus, the best match that reflects this calculation aligns