Answer:
It would report 21,778 on interest expense
Explanation:
Because it is the first payment, we can use the compoun interest formula
[tex]Principal * (1+ r)^{time} = Amount[/tex]
[tex]$Amount - Principal = Interest Paid[/tex]
[tex]1,000,000 * (1+ 0.09)^{1/4} =1,021,778 [/tex]
[tex]1,021,778- 1,000,000= 21,778[/tex]
The rest of the cuota would be amortization of the principal
It is important to do not split the interest in four because the interest are decreasing over the course of the note life. That's because along with the interest accrued during the period World Co. is also paying a portion of the principal
