Use the following background information to answer the question provided. Please look at the attached image to determine if the interest expense calculations are correct/incorrect, and please provide an explanation.

Revenue		2016	2017	2018
	Sales revenue	35,000	60,000	80,000
Total Revenues		35,000	60,000	80,000
Expenses
	Advertising	675	700	800
	Cost of goods sold	10,000	20,000	40,000
	Depreciation Expense	5,400	5,400	5,400
	Insurance	1,120	1,120	1,120
	Interest expense	-	769.06	1,459.71
	Rent	3,000	3,000	3,000
	Salaries and wages	1,000	4,000	5,000
	Travel	1,250	1,500	2,000
	Telephone Expenses	500	500	500
	Registration Expenses	1,000	1,000	1,000
	Legal Expenses	1,500	1,500	1,500
Total Expenses		25,445	39,489	61,780

Background:

Betty planned to apply for a local loan from the Southold Savings Bank for $10,000, which would have been received January 1, 2017. This loan was for a 5-year term with interest at 9%, annually paid monthly (60 monthly payments).

Question:

In Excel, prepare the Income Statement for Wools Vest. You need to compute the Interest Expense Amount annually. Go to www.bankrate.com.