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On January 1, 2018, an individual (Lender) loaned a third party $25,000 at 5% annual interest. Lender incurred loan registration fees of $750. In 2020, Lender setup a reserve for unpaid interest of $3,000 as they did not receive any interest or principal repayments due to financial hardships of the third party. How much of would Lender deduct in 2020? Multiple Choice $5,000 $1,400 $1,250 $3,150

On January 1, 2018, an individual (Lender) loaned a third party $25,000 at 5% annual interest. Lender incurred loan registration fees of $750. In 2020, Lender setup a reserve for unpaid interest of $3,000 as they did not receive any interest or principal repayments due to financial hardships of the third party. How much of would Lender deduct in 2020? Multiple Choice $5,000 $1,400 $1,250 $3,150

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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On January 1, 2018, an individual (Lender) loaned a third party $25,000 at 5% annual interest. Lender incurred loan registration fees of $750. In 2020, Lender setup a reserve for unpaid interest of $3,000 as they did not receive any interest or principal repayments due to financial hardships of the third party. How much of would Lender deduct in 2020? Multiple Choice O $5,000 $1,400 $1,250 $3,150
Transcribed Image Text:On January 1, 2018, an individual (Lender) loaned a third party $25,000 at 5% annual interest. Lender incurred loan registration fees of $750. In 2020, Lender setup a reserve for unpaid interest of $3,000 as they did not receive any interest or principal repayments due to financial hardships of the third party. How much of would Lender deduct in 2020? Multiple Choice O $5,000 $1,400 $1,250 $3,150
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