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Let's assume you borrowed $4000 from Wells Fargo Bank on July 1. The annual Percentage Rate is 4%. The term is 2 years. After you paid the first month's payment (i.e., August 1), you received the tax return of $500 from the IRS on the same day. You used the tax return for the loan payment on the same day. What would be an outstanding balance after you made the September payment?

Let's assume you borrowed $4000 from Wells Fargo Bank on July 1. The annual Percentage Rate is 4%. The term is 2 years. After you paid the first month's payment (i.e., August 1), you received the tax return of $500 from the IRS on the same day. You used the tax return for the loan payment on the same day. What would be an outstanding balance after you made the September payment?

FINANCIAL ACCOUNTING
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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Let's assume you borrowed $4000 from Wells Fargo Bank on July 1. The annual Percentage Rate is 4%. The term is 2 years. After you paid the first month's payment (i.e., August 1), you received the tax return of $500 from the IRS on the same day. You used the tax return for the loan payment on the same day. What would be an outstanding balance after you made the September payment? 3678.73 3177.07 3213.83 3529.32
Transcribed Image Text:Let's assume you borrowed $4000 from Wells Fargo Bank on July 1. The annual Percentage Rate is 4%. The term is 2 years. After you paid the first month's payment (i.e., August 1), you received the tax return of $500 from the IRS on the same day. You used the tax return for the loan payment on the same day. What would be an outstanding balance after you made the September payment? 3678.73 3177.07 3213.83 3529.32
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