Campus Flights takes out a bank loan in the amount of $200,500 on March 1. 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. (Round answers to the nearest whole dollar if needed.) Compute the interest recognized as of December 31 in year 1 rounded to the whole dollar. Compute the principal due in year 1. Loan= $200.500 Interest=8% Period=10 1) Interest Amount 200,500 x 8% x 10/12= 13,367 I WOULD LIKE TO KNOW HOW IT IS CALCULATED OR HOW THESE NUMBERS COME OUT, THANK YOU 2) r=8%, n=10 =6,71 (200,500/6.71)-(200,500x8%)= 13840 200,500-13,840=186,660 Dollar
Campus Flights takes out a bank loan in the amount of $200,500 on March 1. 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. (Round answers to the nearest whole dollar if needed.) Compute the interest recognized as of December 31 in year 1 rounded to the whole dollar. Compute the principal due in year 1. Loan= $200.500 Interest=8% Period=10 1) Interest Amount 200,500 x 8% x 10/12= 13,367 I WOULD LIKE TO KNOW HOW IT IS CALCULATED OR HOW THESE NUMBERS COME OUT, THANK YOU 2) r=8%, n=10 =6,71 (200,500/6.71)-(200,500x8%)= 13840 200,500-13,840=186,660 Dollar
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 1EA: Campus Flights takes out a bank loan in the amount of $200,500 on March 1. The terms of the loan...
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Question
- Campus Flights takes out a bank loan in the amount of $200,500 on March 1. 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. (Round answers to the nearest whole dollar if needed.)
- Compute the interest recognized as of December 31 in year 1 rounded to the whole dollar.
- Compute the principal due in year 1.
Loan= $200.500
Interest=8%
Period=10
1) Interest Amount 200,500 x 8% x 10/12= 13,367
I WOULD LIKE TO KNOW HOW IT IS CALCULATED OR HOW THESE NUMBERS COME OUT, THANK YOU
2) r=8%, n=10 =6,71
(200,500/6.71)-(200,500x8%)= 13840
200,500-13,840=186,660 Dollar
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