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Principal amount multiplied to interest rate and then multiply to time period
as follow we can calculate,
firstly we take all data from question principal amount intrest rate and time period. after solve the rate due to it is in percentage and we simply it. so after we use fomula for intrest amount or intrest payable which is
principal amount multiplied with simplified interest rate and than its answer multiplied with the time period per year.
Interest expense is an income statement account which is used to report the amount of interest incurred on debt during a period of time. Interest payable is a current liability account that is used to report the amount of interest that has been incurred but has not yet been paid as of the date of the balance sheet.
Interest expense = original amount * time * interest rateWhile the interest due is the final benefit accrued and be late payment Miedhaotoda in the debtor's side of the budget
