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andriy [413]
3 years ago
13

A $20,000, 90-day, 8% note payable was issued on November 1, 2015. Using a 360-day year, what is the amount of accrued interest

on December 31, 2015?
Business
1 answer:
Elden [556K]3 years ago
6 0

Answer:

$267

Explanation:

Calculation for the amount of accrued interest on December 31, 2015

Accrued interest=20,000 x 8% x 60 days/360 days

Accrued interest= $267

Note that November 1, 2015 to December 31, 2015 will gives us 60 days while 360 days represent the number of days in a year

Therefore the amount of accrued interest on December 31, 2015 will be $267

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