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Answer to Question #94890 in Finance for Tonje Kvivik
Question #94890
If I took out a loan July 1 of this year of NOK 500,000. The loan will be repaid with the same amount every year for four years. The interest rate is 5% and the interest is paid in arrears. Interest and installments will be paid for the first time on June 30 until next year. What is posted as interest expense this year?
Expert's answer
Interest expense this year is NOK25000 ( 500000*0.05 = 25000)
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