On April 1, 2016, Rizzo Company purchased $80,000 of 4.5%, 20-year Energizer Company bonds at their face amount plus one month’s accrued interest. The bonds pay interest on March 1 and September 1. On...

On April 1, 2016, Rizzo Company purchased $80,000 of 4.5%, 20-year Energizer Company bonds at their face amount plus one month’s accrued interest. The bonds pay interest on March 1 and September 1. On November 1, 2016, Rizzo Company sold $30,000 of the Energizer Company bonds acquired on April 1, plus two months’ accrued interest. On December 31, 2016, four months’ interest was accrued for the remaining bonds.

Determine the interest earned by Rizzo Company on Energizer Company bonds for 2016.