Use the following information to answer the question(s)below:
Ideko's Planned Debt (000's)
-If Ideko's loans will have an interest rate of 6.8%,then the interest expense (in 000's)paid in 2009 is closest to:
A)$6800.
B)$7310.
C)$7820.
D)$7990.

Question

Use the following information to answer the question(s)below:
Ideko's Planned Debt (000's) 
-If Ideko's loans will have an interest rate of 6.8%,then the interest expense (in 000's)paid in 2009 is closest to:
A)$6800. 
B)$7310. 
C)$7820. 
D)$7990.

Quizplus · Accepted Answer

To calculate the interest expense, we need to multiply Ideko's planned debt ($114,646,000) by the interest rate (6.8%).

$114,646,000 x 0.068 = $7,820,288 or approximately $7,820,000 (rounded to the nearest thousand). Therefore, the answer is C) $7820.

Use the Following Information to Answer the Question(s)below