Interest Bearing Notes - BUS–A 201, Indiana University--Bloomington

in Topic 9 (Video 1 of 3)

8 minutes

When you borrow money, you don't get it for free. Here, we're going to calculate the interest on an interest bearing loan.

This Video Mentioned Some Formulas

Face Value

* Annual Percentage Rate

* (Months Outstanding / 12) You could use (Days Outstanding / 360) instead of months

Interest Expense (or Revenue)

Maturity Value = Principal + Interest

1	Interest Bearing Notes You are here.	8:26
2	Non-interest Bearing Notes	6:16
3	Contingencies	5:58

	Click Here to View All Topic 9 Problems at Once	View
1	Liability Classification	Easy
2	Contingent Liabilities	Moderate
3	Contingent Liabilities - Warranties	Moderate