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Compute any interest accrued for each of the following notes payable owed by Target, Inc. as of December 31 of the current year (assume a
Compute any interest accrued for each of the following notes payable owed by Target, Inc. as of December 31 of the current year (assume a 365-day year). (See table below for information)
I have tried using this formula: INT Expense = Principal x Annual rate x Portion of year outstanding and cannot get the correct answers. For portion of year outstanding I have used days accrued/365. So for Kinex interest would have accrued for 41 days, but maybe that is wrong?
Lender | Issuance Date | Principal | Coupon Rate % | Term | Accrued Interest |
Kinex | 11/21 | $17,000 | 11% | 120 days | |
Bati | 12/13 | $11,000 | 10 | 90 days | |
Jett | 12/19 | $16,000 | 13 | 60 days |
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