Over the life of a note payable, the amount of interest expense allocated to each period is calculated by

Multiple Choice

• Multiplying the market interest rate at issuance of the note by the beginning-of-period balance of the note

• Dividing the interest rate at issuance of the note by the beginning-of-period balance of the note

• Multiplying the interest rate at issuance of the note by the end-of-period balance of the note

• Multiplying either the interest rate or the market interest rate at issuance of the note by the beginning-of-period balance of the note

• Multiplying the interest rate at issuance of the note by the beginning-of-period balance of the note