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Gnoma [55]
3 years ago
13

Goel Inc. issued a 120-day (4 month) note in the amount of $540,000 on November 1, 2019 with an annual rate of 6%. What amount o

f interest has accrued as of December 31, 2019?
Business
1 answer:
Scrat [10]3 years ago
4 0

Answer:

the accrued interest as on Dec 31,2019 is $5,400

Explanation:

The computation of the accrued interest as on Dec 31,2019 is as follows:

= Note amount  × rate of interest × number of days ÷ total number of days

= $540,000 × 0.06 × 60 days ÷ 360 days

=  $5,400

The 60 days is calculated from the Nov 1 to Dec 31

Hence, the accrued interest as on Dec 31,2019 is $5,400

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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