Why does interest expense decrease during the life of an installment note payable? How is the amount of interest expense computed?
What will be an ideal response?
Interest expense on a note payable is based on remaining principal balance. Because each payment includes a principal repayment as well as a payment for interest, the amount of principal would decrease with time. The interest is computed by multiplying the stated rate times the principal balance.
You might also like to view...
The going rate of interest on a 5-year treasury bond is 4.25%. You have one that will pay $2,500 five years from now. How much is the bond worth today?
A. $1,928.78 B. $2,030.30 C. $2,131.81 D. $2,238.40 E. $2,350.32
In the conceptualization stage of a project, the firm ______.
A. determines the purpose of the project B. develops a statement of work C. creates work breakdown structures D. establishes risk management techniques
Why is the first thing the audience hears in your presentation key to careful planning of the presentation?
A) The audience needs a few minutes to focus on the topic B) The audience will better understand key points to look for in the presentation C) The audience is likely to remember the first things they hear D) The audience is likely to let their minds wander later in the presentation E) The audience will be able to apply their personal goals to the presentation
CFSCM stands for ______.
a. collaboration-focused supply chain management b. customer-focused supply chain management c. communication-focused supply chain management d. company-focused supply chain management