Going places adventure travel signed a 14%, 10-year note for
$152000. The company paid an installment...
Free
80.2K
Verified Solution
Link Copied!
Question
Accounting
Going places adventure travel signed a 14%, 10-year note for$152000. The company paid an installment of $2200 for the firstmonth. After the first payment, what is the principlebalance?
Answer & Explanation
Solved by verified expert
4.4 Ratings (523 Votes)
After the first payment, the principle balance
is
$ 1,51,573.33
Working:
#
1
Interest
for the first month
=
Beginning
note value * Interest rate
=
$
1,52,000.00
*
14%
*1/12
=
$ 1,773.33
#
2
First
month's Installment
=
$ 2,200.00
Less
interest
$ 1,773.33
Principal
repayment
$
426.67
#
3
After the
first payment, the principle balance
=
Beginning
principal balance - Reduction in principal from first month's
installment payment
=
$
1,52,000.00
-
$
426.67
=
$
1,51,573.33
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
