Imputed Interest

This template can be used to impute interest on noninterest-bearing notes and notes with interest rates that are not reasonable in comparison to prevailing market conditions. The template imputes interest in accordance with APB Opinion No. 21, Interest on Receivables and Payables. The template also creates an amortization schedule for notes with up to 360 periods.
Using the interest method, the template amortizes the discount or premium over the life of the note.

Entering Data

All of the information needed to calculate the present value of the note’s future cash flows and amortize the related discount or premium on the note is entered on the Input worksheet.