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ashleybrigman04
Oct 25, 2011, 09:48 AM
ABC Company signed a 5-year note payable for $80,000 at 9% annual interest. What is the interest expense for December 31, 2009 if the note was signed on May 1, 2009

pready
Oct 26, 2011, 06:47 AM
Interest = Principal * Rate * Time
Take the amount of the note * the annual interest rate * time

So: $80,000*9%*9/12 = Interest