Ascertain the statement of the retained earnings for the year 2019.

Question

Suppose you take out a five-year car loan for $14000, paying an annual interest rate of 4%. You make monthly payments of $258 for this loan. Complete the table below as you pay off the loan. Months Amount still owed 4% Interest on amount still owed (Remember to divide by 12 for monthly interest) Amount of monthly payment that goes toward paying off the loan (after paying interest) 0 14000 1 2 3 + LO 5 6 7 8 9 10 10 11 12 What is the total amount paid in interest over this first year of the loan?

Answer 1

Question

Chapter 16, Problem 8E

1.

To determine

Ascertain the statement of the retained earnings for the year 2019.

2.

To determine

Provide a note as to disclose the restriction placed on retained earnings

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