Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 10 - Reporting and Analyzing Liabilities - Questions - Page 541: 15

Answer

= 800,000 x 6% x 1year = 48,000. The Interest payment at the end of the first period will be 48,000 dollars.

Work Step by Step

The interest will be calculated as follows: Interest = Principal amount x Rate of interest x Period (in years)
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