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Formula sheet
Every formula in Long-Term Borrowings, in one place. Print it and keep it beside you while you practise.
13.3 Recording Interest Expense
Interest expenseG3
Interest expense incurred = Interest rate per annum (%) × Outstanding loan balance × (Months used ÷ 12)
13.5 Interpreting Loan and Interest Expense Accounts
Length of loan
Length of loan (years) = Total loan ÷ Annual instalment