LO 12.2 Compute Amortization of Long-Term Liabilities Using the
https://spscc.pressbooks.pub/financialaccounting2021v2/chapter/compute-amortization-of-long-term-liabilities-using-the-effective-interest-method/
WebTo determine the amount of the payment that is interest, multiply the principal by the interest rate ($10,000 × 0.12), which gives us $1,200. This is the amount of interest charged that year. The payment itself ($2,773.93) is larger than the interest owed for that period of time, so the remainder of the payment is applied against the principal.
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