Log in

View Full Version : Interest expense


paul7688
Feb 11, 2009, 08:42 AM
I have an 8% bond payable valued at $800,000 how do I calculate the interest expense

pready
Feb 11, 2009, 05:20 PM
Interest is equal to principal X rate X time.

I = $8,000 X 8% = $640 a year

If you have the bond for 2 months then it is:
I=$8,000 X 8% X 2/12