Question

Accrued Interest Payable Compute the interest accrued on each of the following notes payable owed by Northland, Inc., on December 31:

Use 360 days for calculations and round the nearest dollar.
Lender Date of Note Principal Interest Rate (%) Term
Maple November 21 $26,000 11% 160 days
Wyman December 13 22,000 12% 30 days
Nahn December 19 14,000 9% 75 days

Answer 1

Maple - November 21

Principal = $26,000

Interest = 11%

Interest per day = $26,000*11%/360 = $7.94

No of Days Interest Accrued = 40 days

Interest accrued = $7.94 * 40 days = $317.60

Wyman - December 13

Principal = $22,000

Interest = 12%

Interest per day = $22,000*12%/360 = $7.33

No of Days Interest Accrued = 18 days

Interest accrued = $7.33 * 18 days = $131.94

Nahn - December 19

Principal = $14,000

Interest = 9%

Interest per day = $14,000*9%/360 = $3.50

No of Days Interest Accrued = 12 days

Interest accrued = $3.50 * 12 days = $42