On June 30, 2017, Rolloff Inc. borrowed $25,000 from its bank, signing a 6% note. Principal and
Question:
On June 30, 2017, Rolloff Inc. borrowed $25,000 from its bank, signing a 6% note. Principal and interest are due at the end of two years.
Required
1. Assuming that the note earns simple interest for the bank, calculate the amount of interest accrued on each of the following dates:
December 31, 2017
December 31, 2018
June 30, 2019
2. Assume instead that the note earns 6% for the bank but is compounded semiannually. Calculate the amount of interest accrued on the same dates as in part (1).
3. How much additional interest expense will Rolloff have to pay with semiannual interest?
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1 Dec 31 2017 25000 6 612 750 Dec 31 2018 25000 6 1212 1500 June 30 2019 25000 ...View the full answer
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Related Book For 
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1337491471
10th edition
Authors: Gary A. Porter, Curtis L. Norton
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