Interest Bearing Notes - Acct 2300, Texas Tech

in Chapter 9 (Video 1 of 10)

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

Maturity Value = Principal + Interest

Face Value

* Annual Percentage Rate

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

Interest Expense (or Revenue)

1	Interest Bearing Notes You are here.	8:26
2	Non-interest Bearing Notes	6:16
3	Contingencies	5:58
4	What is Present Value	8:15
5	Simple vs Compound	14:41
6	PV of a Lump Sum	4:39
7	PV of a Lump Sum	6:09
8	Ordinary Annuity	7:16
9	Purchasing with an Annuity	4:31
10	Finding the Payment	6:07

	Click Here to View All Chapter 9 Problems at Once	View
1	Liability Classification	Easy
2	Contingent Liabilities	Moderate
3	Contingent Liabilities - Warranties	Moderate
4	Purchasing with a Non-Interest Bearing Note	Moderate