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Compute any interest accrued for each of the following notes payable owed by Penman, Inc. as of December 31 2012 assume a 365 day year. Round your answers to two decimal places.

LenderIssuance DatePrincipalCoupon Rate %Term
Nissim11/21/2012$18,0008120 days
Klein12/13/2012$11,000790 days
Bildersee12/19/2012$16,0001060 days

User Netadictos
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1 Answer

5 votes

Answer:

Interest accrued for the notes:

Nissim: $ 201,21

Klein: $ 40.08

Bilderseet: $ 52.60

Step-by-step explanation:

interest are calcualte as follows:

principal x rate x time = interest

we must always express rate and time in the same metric, in this case days over a 365 days year

Nissim: time from 11/21/2012 to 12/31/2012 = 51 days

18,000 x 8% x 51/365 = 201,2054

Klein time from 12/13/2012 to 12/31/2012 = 19 days

11,000 x 7% x 19/365 = 40,08219

Bilderseet time from 12/19/2012 to 12/31/2013 = 12 days

16,000 x 10% x 12/365 = 52,6027

User Adam Milward
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