Question

# ompute total interest accrued for all of the following notes payable owed by Petry Company, as...

ompute total interest accrued for all of the following notes payable owed by Petry Company, as of December 31, 2019 (use a 365-day year).

 Lender Issuance Date Principal Coupon rate (%) Term Nissim 10/30/19 \$20,000 11% 120 days Klien 12/1/19 \$15,000 8% 90 days Bildersee 12/21/19 \$17,000 10% 60 days

Calculation of Total Interest Accrued on December 31, 2019

 Particulars Amount Nissim 373.70 Klien 98.63 Bildersee 46.58 Total Interest Owed by Petry 518.91

Notes:-

For Nissim

Interest due on Dec 31 2019 = 20,000 * 11/100 * 62/365

= \$ 373.70

Number of Days = 62 Days (1 Day of October + 30 Days of November + 31 Days of December)

For Klien

Interest due on Dec 31,2019 = 15,000 * 8/100 * 30/365

= \$ 98.63

Number of Days = 30 Days of December (Between 02/12/2019 to 31/12/2019)

For Bildersee

Interest due on Dec 31,2019 = 17,000 * 10/100 * 10/365

= \$ 46.58

Number of Days = 10 Days of December (22/12/2019 to 31/12/2019)

In Calculation of Number of Days between nite issuance date and Dec 31,2019 for calculating Interest the date off issuance of nite should be excluded.

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