ACTIVITY 3-1 Prepare an amortization schedule for a three year loan of P90,000. The interest rate is 10% per year, and the loan calls for equal annual payments. 15pts. 1. How much interest is paid on the third year? 2. How much total interest is paid over the life of the loan? 3. How much is the total amount paid? Outstanding Balance Year Interest Annual Amortization Principal Paid 1 2 3 Total = P90,000

ACTIVITY 3-1 Prepare an amortization schedule for a three year loan of P90,000. The interest rate is 10% per year, and the loan calls for equal annual payments. 15pts. 1. How much interest is paid on the third year? 2. How much total interest is paid over the life of the loan? 3. How much is the total amount paid? Outstanding Balance Year Interest Annual Amortization Principal Paid 1 2 3 Total = P90,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Prepare an amortization schedule for a three year loan of P90,000. The interest rate is 10% per year, and the loan calls for equal annual payments

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АCTVITY 3-1
Prepare an amortization schedule for a three year loan of P90,000.
The interest rate is 10% per year, and the loan calls for equal annual
payments. 15pts.
1. How much interest is paid on the third year?
2. How much total interest is paid over the life of the
loan?
3. How much is the total amount paid?
Outstanding
Balance
Interest
Principal
Paid
Year
Annual
Amortization
1
2
3
Total
= P90,000
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