acct209 at Texas A&M

8. Interest Bearing Notes

in Chapter 8 (Video 8 of 10)
When you borrow money, you don't get it for free. Here, we're going to calculate the interest on an interest bearing loan.

This Video Mentioned Some Formulas

Face Value
* Annual Percentage Rate
* (Months Outstanding / 12) You could use (Days Outstanding / 360) instead of months
Interest Expense (or Revenue)
Maturity Value = Principal + Interest

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