What is the carrying amount of the loan receivable on January 1, 2021? Appari Bank granted a loan to a borrower on January 1, 2021. The interest rate on the loan is 10% payable annually starting December 31, 2021. The loan matures in five years on December 31, 2025. Principal amount Origination fee received from borrower Direct origination cost incurred 4,000,000 350,000 61,500

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What is the carrying amount of the loan receivable on January 1, 2021?
Appari Bank granted a loan to a borrower on January 1, 2021. The interest rate on the loan is 10%
payable annually starting December 31, 2021. The loan matures in five years on December 31, 2025.
Principal amount
Origination fee received from borrower
Direct origination cost incurred
4,000,000
350,000
61,500
The effective rate on the loan after considering the direct origination cost incurred and origination fe
received is 12%.
a. 4,000,000
O b. 4,650,000
O c. 4,411,500
O d. 3,711,500
Transcribed Image Text:What is the carrying amount of the loan receivable on January 1, 2021? Appari Bank granted a loan to a borrower on January 1, 2021. The interest rate on the loan is 10% payable annually starting December 31, 2021. The loan matures in five years on December 31, 2025. Principal amount Origination fee received from borrower Direct origination cost incurred 4,000,000 350,000 61,500 The effective rate on the loan after considering the direct origination cost incurred and origination fe received is 12%. a. 4,000,000 O b. 4,650,000 O c. 4,411,500 O d. 3,711,500
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