Asked by Marie Brandt on Jul 06, 2024
Verified
Determine the interest on the following notes:
(a) $2000 at 6% for 90 days.
(b) $900 at 9% for 5 months.
(c) $3000 at 8% for 60 days
(d) $1600 at 7% for 6 months
Interest Calculation
The process of determining the amount of interest owed or earned over a specified time period, based on the principal amount and the rate of interest.
- Gain an understanding of the process for documenting notes receivable transactions in financial records and determining interest revenue.
Verified Answer
TL
Timilehin LamoriuJul 09, 2024
Final Answer :
(a) $30.00 ($2000 × .06 × 90/360)
(b) $33.75 ($900 × .09 × 5/12)
(c) $40.00 ($3000 × .08 × 60/360)
(d) $56.00 ($1600 × .07 × 6/12)
(b) $33.75 ($900 × .09 × 5/12)
(c) $40.00 ($3000 × .08 × 60/360)
(d) $56.00 ($1600 × .07 × 6/12)
Learning Objectives
- Gain an understanding of the process for documenting notes receivable transactions in financial records and determining interest revenue.