xtended a 5,000,000, 10% loan to a borrower. The principal is due in 4 years time but interest is due annually every Dec. 31. Sore bank incurred direct loan origination costs of 261,986 and charged the borrower origination fee of 2%. Compute for the carrying amounts of the loan on Jan. 1 , 20x1. and Dec 31 20x1, respectively.
xtended a 5,000,000, 10% loan to a borrower. The principal is due in 4 years time but interest is due annually every Dec. 31. Sore bank incurred direct loan origination costs of 261,986 and charged the borrower origination fee of 2%. Compute for the carrying amounts of the loan on Jan. 1 , 20x1. and Dec 31 20x1, respectively.
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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on jan 1 20x1, Sore bank extended a 5,000,000, 10% loan to a borrower. The principal is due in 4 years time but interest is due annually every Dec. 31. Sore bank incurred direct loan origination costs of 261,986 and charged the borrower origination fee of 2%.
Compute for the carrying amounts of the loan on Jan. 1 , 20x1. and Dec 31 20x1, respectively.
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