Suga Bank granted a loan to a borrower on January 1, 2020. The interest rate on the loan is 10% payable annually starting December 31, 2020. The loan matures in five years on December 31, 2024. Principal amount- P4,000,000 Direct origination cost- P61,500 Origination fee received from borrower- P350,000 The effective rate on the loan after considering the direct origination cost and origination fee received is 12%. What is the interest income for 2020? A. P529,380 B. P558,000 C. P445,380 D. P400,000
Suga Bank granted a loan to a borrower on January 1, 2020. The interest rate on the loan is 10% payable annually starting December 31, 2020. The loan matures in five years on December 31, 2024. Principal amount- P4,000,000 Direct origination cost- P61,500 Origination fee received from borrower- P350,000 The effective rate on the loan after considering the direct origination cost and origination fee received is 12%. What is the interest income for 2020? A. P529,380 B. P558,000 C. P445,380 D. P400,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Suga Bank granted a loan to a borrower on January 1, 2020. The interest rate on the loan is 10% payable annually starting December 31, 2020. The loan matures in five years on December 31, 2024.
- Principal amount- P4,000,000
- Direct origination cost- P61,500
- Origination fee received from borrower- P350,000
The effective rate on the loan after considering the direct origination cost and origination fee received is 12%.
What is the interest income for 2020?
A. P529,380
B. P558,000
C. P445,380
D. P400,000
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