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 197.26 | |
| Klein | 12/13/2012 | 14,000 | 9 | 90 days | $Answer 62.14 | |
| Bildersee | 12/19/2012 | 16,000 | 12 | 60 days | $Answer 63.12 |
Solution:
| Lender | Issuance Date | Principal | Coupon | Term | ||
| Rate (%) | accured interest | |||||
| Nissim | 11/21/2012 | $18,000 | 10% | 120 days | ||
| Klein | 12/13/2012 | 14,000 | 9 | 90 days | ||
| Bildersee | 12/19/2012 | 16,000 | 12 | 60 days | ||
| Solution | ||||||
| interest accured | 18000*10/100*40/365 | 197.26 | ||||
| 14000*9/100*18/365 | 62.14 | |||||
| 16000*12/100*12/365 | 63.12 | |||||