Question

Complete the following table by computing the missing amounts for the following independent cases. (Do not round intermediate calculations. Round "Annual Interest Rate" to 1 decimal place.) Principal Amount on Note Receivable Annual Interest Rate Time Period Interest Earned 11.8 % a b. $ $ 145,000 59,000 6 months 9 months 12 months $ 5,133 $ 5,341 10.9 %

Answer 1

	Principal Amount on		in Months			Calculation
	Notes Receivable	Annual Interest Rate	Time Period	Interest Earned
a	145,000	11.8%	6	8,555		=145,000 * 11.8% * 6 / 12
b	59,000	11.6%	9	5,133		=5,133 / 59,000 * 12 / 9
c	49,000	10.9%	12	5,341		=5,341 / 10.9% * 12 / 12
	Formula
	Interest Earned =	Notes Receivable * Annual Interest Rate * Time Period