Campus Flights takes out a bank loan in the amount of $200,500 on March 1, 2019. The terms of the loan include a repayment of principal in ten equal installments, paid annually from March 1. The annual interest rate on the loan is 8%, recognized on December 31, the fiscal year-end date. PLEASE NOTE: Round answers to the nearest whole dollar if needed. All whole dollar amounts will have "$" and commas, where needed (i.e. $12,345). Compute the interest recognized for the first payment date as of December 31, 2019. $13,367 Compute the interest recognized for the year 2020 as of the first payment date. $16,040 Compute the principal due on the first payment date, March 1, 2020. $186,659 Compute the interest recognized for the second payment date as of December 31, 2020. __________ Compute the total interest for the year 2020. __________ IMPORTANT: Please count your months carefully as the note's "year" crosses between two fiscal years.
Campus Flights takes out a bank loan in the amount of $200,500 on March 1, 2019. The terms of the loan include a repayment of principal in ten equal installments, paid annually from March 1. The annual interest rate on the loan is 8%, recognized on December 31, the fiscal year-end date. PLEASE NOTE: Round answers to the nearest whole dollar if needed. All whole dollar amounts will have "$" and commas, where needed (i.e. $12,345). Compute the interest recognized for the first payment date as of December 31, 2019. $13,367 Compute the interest recognized for the year 2020 as of the first payment date. $16,040 Compute the principal due on the first payment date, March 1, 2020. $186,659 Compute the interest recognized for the second payment date as of December 31, 2020. __________ Compute the total interest for the year 2020. __________ IMPORTANT: Please count your months carefully as the note's "year" crosses between two fiscal years.
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 61P
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Campus Flights takes out a bank loan in the amount of $200,500 on March 1, 2019. The terms of the loan include a repayment of principal in ten equal installments, paid annually from March 1. The annual interest rate on the loan is 8%, recognized on December 31, the fiscal year-end date.
PLEASE NOTE: Round answers to the nearest whole dollar if needed. All whole dollar amounts will have "$" and commas, where needed (i.e. $12,345).
- Compute the interest recognized for the first payment date as of December 31, 2019. $13,367
- Compute the interest recognized for the year 2020 as of the first payment date. $16,040
- Compute the principal due on the first payment date, March 1, 2020. $186,659
- Compute the interest recognized for the second payment date as of December 31, 2020. __________
- Compute the total interest for the year 2020. __________
IMPORTANT: Please count your months carefully as the note's "year" crosses between two fiscal years.
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