How do you figure the total expense of two loans to show for year ending Dec. 31, 2006? The annual payment date is Sept. 30 with first payment due 2007.

To calculate the total expense of two loans for the year ending December 31, 2006, you will need to determine the interest expense for each loan up until that date.

Here is a step-by-step guide to help you calculate the total expense:

1. Identify the details of each loan: Take note of the principal amount, interest rate, and any fees associated with each loan. Also, determine the payment frequency and the length of the loan term.

2. Calculate interest expense for each loan up until December 31, 2006: To calculate the interest expense, you need to determine the number of days between the loan initiation date and December 31, 2006. Multiply this duration by the daily interest rate for each loan to get the interest expense for each loan up until December 31, 2006.

3. Add up the interest expense of each loan: Once you have calculated the interest expense for each loan, add them together to get the total interest expense up until December 31, 2006.

It is important to note that since the first payment for both loans is due in 2007, you will not include any principal payments in the calculation, as they are not incurred before the year-ending date specified.

4. Consider any additional expenses: If there are any other fees or costs associated with the loans, such as origination fees or closing costs, include them in the total expense calculation.

By following these steps, you should be able to determine the total expense of the two loans for the year ending December 31, 2006. Remember to consult the loan agreements and any relevant documentation for accurate details to perform the calculations.