Interest expense is computed by multiplying
a. the face value of the note by the annual percentage rate
b. the face value of the note by the annual interest rate by the number of days outstanding
c. the face value of the note by the annual interest rate by the time period for the loan (expressed as a portion of the year that the loan has been outstanding)
d. the face value of the note by the annual interest rate divided by 365
e. the face value of the note by the annual interest rate divided by 360
Answer: C
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.