A $20 000, 3- month, 8% note payable was issued on 1 November 2015. What is the amount of accrued interest on 31 December 2015?

Name: A $20 000, 3- month, 8% note payable was issued on 1 November 2015. What is the amount of accrued interest on 31 December 2015?
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Quizplus · Accepted Answer

The interest for 3 months is calculated as $20,000 * 8% * (3/12) = $400. However, the accrued interest by 31 December 2015 is for 2 months (November and December), so it is $20,000 * 8% * (2/12) = $267.

A $20 000, 3- Month, 8% Note Payable Was Issued