Red Robin borrowed money to purchase a vehicle this year for $47,210. The vehicle loan is an installment loan with a 6-year life and 8% interest due quarterly. The vehicle was purchased on April 1, so the first loan payment is due June 30. See amortization table below: Vehicle Loan Amortization Principal Interest Years Payments/year Payment Date 6/30/22 9/30/22 12/31/22 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 3/31/25 6/30/25 9/30/25 12/31/25 3/31/26 6/30/26 9/30/26 12/31/26 3/31/27 $47,210 8.00% 6 4 2,496 Interest Principal Payment Balance 47,210 45,658 44,075 42,461 944 1,552 2,496 913 1,583 2,496 882 1,615 2,496 849 1,647 2,496 40,814 816 1,680 2,496 39,134 783 1,713 2,496 37,421 748 1,748 2,496 35,673 713 1,783 2,496 33,891 678 1,818 2,496 32,072 641 1,855 2,496 30,218 604 1,892 2,496 28,326 567 1,930 2,496 26,397 528 1,968 2,496 24,428 489 2,007 2,496 22,421 448 2,048 2,496 20,373 407 2,089 2,496 18,285 366 2,130 2,496 16,154 323 2,173 2,496 13,981 280 2,216 2,496 11,765 235 2,261 2,496 9,504

Red Robin borrowed money to purchase a vehicle this year for $47,210. The vehicle loan is an installment loan with a 6-year life and 8% interest due quarterly. The vehicle was purchased on April 1, so the first loan payment is due June 30. See amortization table below: Vehicle Loan Amortization Principal Interest Years Payments/year Payment Date 6/30/22 9/30/22 12/31/22 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 3/31/25 6/30/25 9/30/25 12/31/25 3/31/26 6/30/26 9/30/26 12/31/26 3/31/27 $47,210 8.00% 6 4 2,496 Interest Principal Payment Balance 47,210 45,658 44,075 42,461 944 1,552 2,496 913 1,583 2,496 882 1,615 2,496 849 1,647 2,496 40,814 816 1,680 2,496 39,134 783 1,713 2,496 37,421 748 1,748 2,496 35,673 713 1,783 2,496 33,891 678 1,818 2,496 32,072 641 1,855 2,496 30,218 604 1,892 2,496 28,326 567 1,930 2,496 26,397 528 1,968 2,496 24,428 489 2,007 2,496 22,421 448 2,048 2,496 20,373 407 2,089 2,496 18,285 366 2,130 2,496 16,154 323 2,173 2,496 13,981 280 2,216 2,496 11,765 235 2,261 2,496 9,504

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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