Use the following information to answer the question(s) below:
Ideko's Planned Debt

-If Ideko's loans will have an interest rate of 6.8%,then the interest expense paid in 2008 is closest to:
A) $6,800
B) $7,310
C) $7,820
D) $7,990
E) $8,160

Question

Use the following information to answer the question(s) below:
Ideko's Planned Debt
 
-If Ideko's loans will have an interest rate of 6.8%,then the interest expense paid in 2008 is closest to:
A) $6,800 
B) $7,310 
C) $7,820 
D) $7,990 
E) $8,160

Quizplus · Accepted Answer

A) Interest_t = Interest rate × ending balance_t-1 = .068 × 100,000 = $6,800

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