Question

To calculate interest expense in the future, you should do which of the following? 1 Apply...

To calculate interest expense in the future, you should do which of the following?

1 Apply a weighted average interest rate times the beginning debt balance

2 Apply a weighted average interest rate times the ending debt balance

3 Apply a weighted average interest rate times the average debt balance over the course of the year

4 None of the above

choose one of 4 above

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Answer #1

Apply a weighted average interest rate times the average debt balance over the course of the year

Answer is Option 3)

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