Use the average interest expense approach to calculate the annual interest expense given the following details.

Details:
Beginning TLB: $300.0
Ending TLB: $250.0
Interest rate: 4%

Question

Quizplus · Accepted Answer

The average interest expense is calculated using the formula: Interest Expense = (Beginning TLB + Ending TLB) / 2 * Interest Rate. Plugging in the numbers: ($300.0m + $250.0m) / 2 * 4% = $550.0m / 2 * 4% = $275.0m * 4% = $11.0m.

Use the Average Interest Expense Approach to Calculate the Annual