Use the present value and future value tables included in Appendix 8 and on the textbook companion website.
- Interest expense on a 6-month, 8 percent, $6,000 note payable would be approximately

Question

Use the present value and future value tables included in Appendix 8 and on the textbook companion website. 
- Interest expense on a 6-month, 8 percent, $6,000 note payable would be approximately

Quizplus · Accepted Answer

Using the present value and future value tables, we can find the approximate interest expense on the note payable as follows:

PV factor for 6 months at 8% = 0.9804
FV factor for 6 months at 8% = 1.0816

Interest expense = $6,000 x (1.0816 - 0.9804) = $240

Use the Present Value and Future Value Tables Included in Appendix