Baxter Corp. borrowed $14,875 from State Bank and signed a 10-month, 6% note for this amount on October 1, 20x1. Related to this note, what amount of interest expense should Baxter report in 20x2? Round to the nearest penny.

Baxter Corp. borrowed $14,875 from State Bank and signed a 10month, 6% note for this amount on October 1,201. Related to this note, what amount of interest expense should Baxter report in 202? Round to the nearest penny