 Business
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

+2
1. 15 April, 18:18
0
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