A table of notes receivable for 2018 follows:

For each of the notes receivable, compute the amount of interest revenue earned during

2018.

Round to the nearest dollar. (Use a 365 - day year for the notes with interest periods in days and a 12-month year for notes with interest periods in months.)

Note 1

Note 2

Note 3

Note 4

Principal

Interest Rate

Interest Period During 2018

Note 1

$30,000

4%

3

months

Note 2

16,000

8%

90

days

Note 3

18,000

10%

180

days

Note 4

150,000

12%

6

months

Question

Coco

Business

13 April, 15:19

A table of notes receivable for 2018 follows:

For each of the notes receivable, compute the amount of interest revenue earned during

2018.

Round to the nearest dollar. (Use a 365 - day year for the notes with interest periods in days and a 12-month year for notes with interest periods in months.)

Note 1

Note 2

Note 3

Note 4

Principal

Interest Rate

Interest Period During 2018

Note 1

$30,000

4%

3

months

Note 2

16,000

8%

90

days

Note 3

18,000

10%

180

days

Note 4

150,000

12%

6

months

+4

Answers (1)

Know the Answer?

Elian Allen · Answer 1

The interest revenue is $ 300+$315.62+$887.67+$4500 = $ 6003.29

Explanation:

Note 1 : Interest Revenue = $ 30,000 * 4% * 3/12 = $ 300

Note 2 : Interest Revenue = $ 16,000 * 8 % * 90/365 = $ 315.62

Note 3: Interest Revenue = $ 18,000 * 10% * 180/365 = $ 887.67

Note 4: Interest Revenue = $ 150,000 * 12% * 6/12 = $ 4500