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    ashleybrigman04's Avatar
    ashleybrigman04 Posts: 1, Reputation: 1
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    #1

    Oct 25, 2011, 09:48 AM
    ABC Company signed a 5-year note payable for $80,000 at 9% annual interest. What is
    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's Avatar
    pready Posts: 3,197, Reputation: 207
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    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
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