Natalie is thinking of repaying all amounts outstanding to her grandmother. Recall that Cookie Creations borrowed $2,000 on November 16, 2010, from Natalie’s grandmother. Interest on the note is 6% per year, and the note plus interest was to be repaid in 24 months.

Recall that a monthly adjusting journal entry was prepared for the months of November 2010 (1/2 month), December 2010, and January 2011.

Natalie needs to know the interest payable, and she needs to record the loan repayment.