Accounting for Lawyers
Alternatively (and more appropriately), the effective interest rate on this loan is 10%. (From Table I, for n = 4, a conversion value of 1.46410 results from a 10% interest rate.) Using the effective interest rate method, the interest expense would be 10% of the amount borrowed: 11/30/02 Interest Expense $10,000. Note Payable $10,000. 3. ................
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