Presented below is a partial amortization schedule for a three-year Installment note requiring monthly payments of $1,974.19.()Interest Expense(4)Decrease inCarrying Value(1)Date(2)Cash PaidCarrying Value(S)Carrying ValuePrior Carrying ValueInterest Rate(2)-83)(4)11/1/202411/30/2024$1,974.1912/31/20241,974.19$420.00409.64$1,554.191,564,55$63,000.0061,445.8159,881.2610/31/20271,974.1913.071,961.121. What is the principal amount of the note?2. What is the total number of monthly payments?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. Roundyour answer to 2 decimal places.)5. The portion of the monthly payment that reduces the carrying value (increases/decreases) over time.1. Principal amount2. Total number of monthly payments3. Total cash paid4 Total amount of interest paid5 The portion of the monthly payment that reduces the carrying value (increases/decreases) over time

Monthly payment refers to an amount that is paid every month for the repayment of a loan amount…

Answered: Presented below is a partial…

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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Please answer practice problem
Lime Co. incurs a $4,000 note with equal principal installment payments due for the next eight years. What is the amount of the current portion of the noncurrent note payable due in the second year? A. $800 B. $1,000 C. nothing, since this is a noncurrent note payment D. $500

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