Question: Given the following information from an amortization table, compute the effective interest expense and the carrying value for the next line of the table: 2%

Given the following information from an amortization table, compute the effective interest expense and the carrying value for the next line of the table:

2% Cash Interest $800

1% Effective Interest $423

Premium Amortization $377

Carrying Value $41,942

The answer is Effective Interest $419; Carrying Value $41,561. I want to know how to calculate.

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