Paying quarterly interest on a bank loan

Transaction

A company has a bank loan of $60,000.00 at 5% a year, with interest paid every three months. Today it pays the interest for the last three months from its bank account; the loan principal does not change.

Assumptions: Interest is calculated on the principal for exactly three months (3/12 of a year). No interest had been accrued for these months before today.

Accounts

Tap an account, then choose Debit or Credit and type the amount. × removes a line.

Debit

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Credit

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Debits $0.00Credits $0.00