Brief Exercise 9-3 (Algo) Interpret an amortization schedule for an installment note (LO9-2) Presented below is a partial amortization schedule for a three-year installment note requiring monthly payments of $1,551.15. (4) Decrease in Carrying Value (1) Date 11/1/2024 11/30/2024 $1,551.15 12/31/2024 1,551.15 10/31/2027 1,551.15 (2) Cash Paid (3) Interest Expense Carrying Value x Interest Rate $330.00 321.86 10.27 1. What is the principal amount of the note? 2. What is the total number of monthly payments? 1. Principal amount 2. Total number of monthly payments (2)-(3) $1,221.15 1,229.29 1,540.88 (5) Carrying Value Prior Carrying Value (4) $49,500.00 48,278.85 47,049.56 3. What is the total cash paid over the entire period of the note? (Round your answer to 2 decimal places.) 4. What is the total amount of interest paid over the entire period of the note? (Do not round your intermediate calculations. Round your answer to 2 decimal places.) 5. The portion of the monthly payment that reduces the carrying value (increases/decreases) over time. 3. Total cash paid 4. Total amount of interest paid 5. The portion of the monthly payment that reduces the carrying value (increases/decreases) over time.
Brief Exercise 9-3 (Algo) Interpret an amortization schedule for an installment note (LO9-2) Presented below is a partial amortization schedule for a three-year installment note requiring monthly payments of $1,551.15. (4) Decrease in Carrying Value (1) Date 11/1/2024 11/30/2024 $1,551.15 12/31/2024 1,551.15 10/31/2027 1,551.15 (2) Cash Paid (3) Interest Expense Carrying Value x Interest Rate $330.00 321.86 10.27 1. What is the principal amount of the note? 2. What is the total number of monthly payments? 1. Principal amount 2. Total number of monthly payments (2)-(3) $1,221.15 1,229.29 1,540.88 (5) Carrying Value Prior Carrying Value (4) $49,500.00 48,278.85 47,049.56 3. What is the total cash paid over the entire period of the note? (Round your answer to 2 decimal places.) 4. What is the total amount of interest paid over the entire period of the note? (Do not round your intermediate calculations. Round your answer to 2 decimal places.) 5. The portion of the monthly payment that reduces the carrying value (increases/decreases) over time. 3. Total cash paid 4. Total amount of interest paid 5. The portion of the monthly payment that reduces the carrying value (increases/decreases) over time.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Brief Exercise 9-3 (Algo) Interpret an amortization schedule for an installment note (LO9-2)
Presented below is a partial amortization schedule for a three-year installment note requiring monthly payments of $1,551.15.
(4)
(3)
Decrease in
Interest Expense Carrying Value
Carrying Value x
Interest Rate
(2) (3)
(1)
Date
11/1/2024
11/30/2024 $1,551.15
12/31/2024
1,551.15.
10/31/2027
1,551.15
(2)
Cash Paid:
$330.00
321.86
10.27
1. What is the principal amount of the note?
2. What is the total number of monthly payments?
1. Principal amount i
2. Total number of monthly payments
$1,221.15
1,229.29
1,540.88
(5)
Carrying Value
Prior Carrying
Value (4)
$49,500.00
48,278.85
47,049.56
3. What is the total cash paid over the entire period of the note? (Round your answer to 2 decimal places.)
4. What is the total amount of interest paid over the entire period of the note? (Do not round your intermediate calculations. Round
your answer to 2 decimal places.)
5. The portion of the monthly payment that reduces the carrying value (increases/decreases) over time.
3. Total cash paid
4. Total amount of interest paid
5. The portion of the monthly payment that reduces the carrying value (increases/decreases) over time.
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Step 1: Introduction to amortization schedule
VIEWStep 2: 1. Calculation of the principal amount of the note
VIEWStep 3: 2. Calculation of the total number of payments
VIEWStep 4: 3. Calculation of the total cash paid over the entire period of the note
VIEWStep 5: 4. Calculation of the total amount of interest over the entire period of the note
VIEWStep 6: 5. Calculation of the portion of the monthly payment that reduces the carrying value
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