$6,000 loan is being repaid over 5 years with 60 monthly payments of $116.00. The...
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Accounting
$6,000 loan is being repaid over 5 years with 60 monthly payments of $116.00. The total dollar amount of interest to be paid using the amortization method is $960.00.
Under the sum of digits method which of the following statements is/are true?
(I) The principal portion of the fourth payment equals $86.10
(II) The loan balance at the end of 3 years equals $2,626.62
A.
II only
B.
I and II
C.
I only
D.
neither statement is true
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