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Determine the dollar value of the interest expense

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Question - Allstar Company signed a $200 000 mortgage on July 1, 2021 for the purchase of their new garage building. The mortgage entailed equal monthly payments of $2 700 at the end of each month. The interest rate is 8% per year.  How much interest expense will be paid on August 31, 2021? Do not use actual days; assume a 360 day year and 30 day months. Round your answer to the nearest whole number (no cents).

On January 1, 2020, Baltimore Company issued $250 000 face value, 8%, 5-year bonds at 102.  Interest is paid annually on January 1. Baltimore uses the straight-line method for amortization. Use this information to determine the dollar value of the interest expense for the 2020 calendar year. Round your answer to the nearest whole number (no cents).

Reference no: EM132926070

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