The note payable relating to the June 2, and 10 transactions is a five-year note, with interest at the rate of 12 percent annually. Interest expense should be computed based on a 360 day year. [IMPORTANT NOTE: The original note on the computer equipment purchased on June 2 was $132,000. On June 10, eight days later, $25,250 was repaid. Interest expense must be calculated on the $132,000 for cight days. In addition, interest expense on the $106,750 balance of the loan (S132,000 less $25,250 $106,750) must be calculated for the 20 days remaining in the month of Junc.]