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    dwatkins1025's Avatar
    dwatkins1025 Posts: 5, Reputation: 1
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    #1

    Apr 16, 2007, 08:42 AM
    accrued interest revenue
    home work question

    comp holds a 90 day receivable of 10,000 from a customer. The note is dated oct 31 and has a 12% interest rate. Your comp year ends on dec 31. How much interest revenue do you accrue on dec 31?

    I said 10,000X.12= 1200*2/12=200 my answer is 200, am I correct
    Superfly999's Avatar
    Superfly999 Posts: 235, Reputation: 14
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    #2

    Apr 16, 2007, 08:47 AM
    Yes, I believe you are. The note was dated at the end of October and only 2 months passed in the question. The 12% is annual interest and only 2 months passed so only 2% interest is incurred. So your calculations are correct.
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #3

    Apr 16, 2007, 01:02 PM
    200, correct
    wizzard23's Avatar
    wizzard23 Posts: 2, Reputation: 1
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    #4

    Oct 11, 2008, 12:02 AM

    the note is good for 90 days only.
    10,000 x 12% = 1,200 x 90 / 360 = 300.00
    it's 2 monhts passed, so interest accrued computation will be: 300 X 60 / 90 = 200.
    Banker's rule is using 360 days.
    You're right!
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