Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 12, Problem 1EA
Campus Flights takes out a bank loan in the amount of $200,500 on March 1. The terms of the loan include a repayment of principal in ten equal installments, paid annually from March 1. The annual interest rate on the loan is 8%, recognized on December 31. (Round answers to the nearest whole dollar if needed.)
A. Compute the interest recognized as of December 31 in year 1 rounded to the whole dollar.
B. Compute the principal due in year 1.
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Campus Flights takes out a bank loan in the amount of $210,000 on March 1. The terms of the loan include a repayment of principal in ten equal installments, paid annually from March 1. The annual interest rate on the loan is 9 percent, recognized on
December 31.
A. Compute the interest recognized as of December 31 in year 1.
B. Compute the principal due in year 1.
Campus Flights takes out a bank loan in the amount of $200,500 on March 1. The terms of the loan include a repayment of principal in ten equal installments, paid annually from March 1. The annual interest rate on the loan is 8%, recognized on December 31. (Round answers to the nearest whole dollar if needed.)
Compute the interest recognized as of December 31 in year 1 rounded to the whole dollar.
Compute the principal due in year 1.
Loan= $200.500
Interest=8%
Period=10
1) Interest Amount 200,500 x 8% x 10/12= 13,367
I WOULD LIKE TO KNOW HOW IT IS CALCULATED OR HOW THESE NUMBERS COME OUT, THANK YOU
2) r=8%, n=10 =6,71
(200,500/6.71)-(200,500x8%)= 13840
200,500-13,840=186,660 Dollar
Campus Flights takes out a bank loan in the amount of $210,000 on March 1. The terms of the loan include a repayment of principal in ten equal installments, paid annually from March 1. The annual interest rate on the loan is 9 percent, recognized on
December 31
A. Compute the interest recognized as of December 31 in year 1.
$15,750 ✓✔
B. Compute the principal due in year 1.
Chapter 12 Solutions
Principles of Accounting Volume 1
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