Awesome Bank granted a loan to a borrower on January 1, 2019. The interest rate on the loan is 10% payable annually starting December 31, 2019. The loan matures in five years on December 31, 2023. Principal amount Direct origination cost Origination fee received from borrower 4,000,000 61,500 350,000 The effective rate on the loan after considering the direct origination cost and origination fee received is 12%. Required:

Awesome Bank granted a loan to a borrower on January 1, 2019. The interest rate on the loan is 10% payable annually starting December 31, 2019. The loan matures in five years on December 31, 2023. Principal amount Direct origination cost Origination fee received from borrower 4,000,000 61,500 350,000 The effective rate on the loan after considering the direct origination cost and origination fee received is 12%. Required:

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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