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15 April, 17:44

Analyzing and Computing Accrued Interest on Notes 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. Lender Issuance Date Principal Coupon Rate (%) Term Accrued Interest Nissim 11/21/2012 $18,000 10% 120 days Answer 0 Klein 12/13/2012 14,000 9 90 days Answer 0 Bildersee 12/19/2012 16,000 12 60 days

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  1. 15 April, 18:18
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    The formula to compute the accrued interest is shown below:

    = Principal * rate of interest * number of months : (total number of months in a year)

    For Nissim

    The computation of accrued interest is shown below:

    = Principal * rate of interest * number of days : (total number of months in a year)

    = $18,000 * 10% * (41 days : 365 days)

    = $202.19

    The 10 days of November and 31 days of December equals to 41 days

    For Klein

    The computation of accrued interest is shown below:

    = Principal * rate of interest * number of days : (total number of months in a year)

    = $14,000 * 9% * (18 days : 365 days)

    = $62.13

    The 18 days of December month

    For Bildersee

    The computation of accrued interest is shown below:

    = Principal * rate of interest * number of days : (total number of months in a year)

    = $16,000 * 12% * (12 days : 365 days)

    = $63.12

    The 12 days of December month
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