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lawyer [7]
3 years ago
8

On january 1, 2013 the minton company borrowed $162,000 cash from hometown bank by issuing a five-year 8% term note. the princip

al and interest are repaid by making annual payments beginning on december 31, 2013. the annual payment on the loan based on the present value of annuity factor would be $40,575. the amount of principal repayment included in the december 31, 2013 payment is:
Business
1 answer:
dem82 [27]3 years ago
6 0
<span>The amount of principal repayment included in the December 31, 2013 payment is $50, 575. In order to get the principal repayment, the different repayments should be divided with the amount of interest. The principal repayment is separated into two parts.</span>
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$1,094.50

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