I cant figure out interest expense Sorry for bad photos mpa

I can\'t figure out interest expense . Sorry for bad photos

mpany sold $500,000 of bonds at 97 on an interest payment date. Assume the be nnually. The bonds carry a stated interest rate of 5 percent. late the amount of cash that will be received and paid by Lewis in the first year late the interest expense that will be recognized in that year. sh received ash paid terest expense $ 485,000 $ 25,000

Solution

Calculate following

Cash received = 500000*97/100 = 485000

Cash paid = 500000*5% = 25000

Interest expense = 25000+(15000/10) = 26500