On October 2, Demitri Company Borrowed $100,000, at 4% Annual

Multiple Choice

On October 2, Demitri Company borrowed $100,000, at 4% annual interest, from First National Bank. Interest will be paid when the loan matures one year from the issue date. What is the amount of interest that Demitri would accrue on December 31, the end of the company's fiscal year?

A) $4,000
B) $3,000
C) $1,000
D) $333
E) $1,333