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The accrued interest on December 31 is S

The accrued interest on December 31 is S

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dirk Ward borrowed $11,000.00 for investment purposes on May 15 on a demand note providing for a variable rate of interest and payment of any accrued interest on December 31. He paid $700 on June 13, $100 on September 18, and $1200 on November 25. How much is the accrued interest on December 31 if the rate of interest was 4% on May 15, 4.25% effective August 1, and 4.65% effective November 1? The accrued interest on December 31 is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Transcribed Image Text:Dirk Ward borrowed $11,000.00 for investment purposes on May 15 on a demand note providing for a variable rate of interest and payment of any accrued interest on December 31. He paid $700 on June 13, $100 on September 18, and $1200 on November 25. How much is the accrued interest on December 31 if the rate of interest was 4% on May 15, 4.25% effective August 1, and 4.65% effective November 1? The accrued interest on December 31 is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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