1. CM Company borrowed Php2 000 000 from a bank on June 30, 2015. The loan has an annual interest rate of 10% and the principal is payable at the end of every quarter amounting to Php250 000. The first quarterly payment will be on September 30, 2015. Prepare an amortization schedule for 2015 until the loan is fully paid on June 30, 2017.How much interest expense is incurred in 2015, 2016 and 2017 with respect to this loan? Page 4 of 6
1. CM Company borrowed Php2 000 000 from a bank on June 30, 2015. The loan has an annual interest rate of 10% and the principal is payable at the end of every quarter amounting to Php250 000. The first quarterly payment will be on September 30, 2015. Prepare an amortization schedule for 2015 until the loan is fully paid on June 30, 2017.How much interest expense is incurred in 2015, 2016 and 2017 with respect to this loan? Page 4 of 6
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:1. CM Company borrowed Php2 000 000 from a bank on June 30, 2015. The loan has an annual
interest rate of 10% and the principal is payable at the end of every quarter amounting to
Php250 000. The first quarterly payment will be on September 30, 2015. Prepare an
amortization schedule for 2015 until the loan is fully paid on June 30, 2017.How much interest
expense is incurred in 2015, 2016 and 2017 with respect to this loan?
Page 4 of 6
2. ESD borrowed Php5 million from a bank on September 30, 2015. The loan principal is payable
every six months starting March 31, 2016 at the rate of Php1 000 000. The loan has an annual
interest rate of 10%. Determine the interest expense related to this loan in 2015, 2016, 2017,
and 2018.
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