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 $116,000.On June 10, eight days later, $22,250 was repaid.Interest expense must be calculated on the $116,000 for eight days.In addition, interest expense on the $93,750 balance of the loan ($116,000 less $22,250 = $93,750) must be calculated for the 20 days remaining in the month of June.]