Question

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

Answer 1

Solution:

Computer the amount of interest revenue earned during 2018

Note 1 - principal×interest × time =interest revenue

$30000×4%×3 month/12

=$300

Note 2- $16000×8%×90days/365

=$315.60

Notes 3- $18000×10%×180 days/365

=$887.67

Note 4- $15000×12%×6 months/12

=$900

Note 1	$300
Note 2	$315.60
Note 3	$887.67
Note 4	$900