What is the interest income for 2021?Philippine Bank granted a loan to a borrower on January 1, 2021. The interest on the loan is 8% payableannually starting December 31, 2023.Principal amountOrigination fee charged against the borrowerDirect origination cost incurred3,000,000100,000260,300After considering the origination fee charged to the borrower and the direct origination cost incurred,the effective rate on the loan is 6%.a. 240,000O b. 189,618c. 252,824O d. 180,000

Interest Income for 2021 = Principal amount* interest rate where, Principal amount = $3,000,000…

What is the interest income for 2021? Philippine Bank granted a loan to a borrower on January 1, 2021. The interest on the loan is 8% payable annually starting December 31, 2023. Principal amount Origination fee charged against the borrower 3,000,000 100,000 Direct origination cost incurred 260,300 After considering the origination fee charged to the borrower and the direct origination cost incurred, the effective rate on the loan is 6%. a. 240,000 O b. 189,618 O c. 252,824 O d. 180,000

What is the interest income for 2021? Philippine Bank granted a loan to a borrower on January 1, 2021. The interest on the loan is 8% payable annually starting December 31, 2023. Principal amount Origination fee charged against the borrower 3,000,000 100,000 Direct origination cost incurred 260,300 After considering the origination fee charged to the borrower and the direct origination cost incurred, the effective rate on the loan is 6%. a. 240,000 O b. 189,618 O c. 252,824 O d. 180,000

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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