VGK Corporation gave a $850,000 loan to MTL Inc. on March 1, 2019. The interest rate on

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VGK Corporation gave a $850,000 loan to MTL Inc. on March 1, 2019. The interest rate on the loan is 8%. MTL agreed to make twelve equal semi-annual payments for six years beginning September 1, 2019.

A. What is the size (amount) of each payment made by MTL Inc.?

B. What is the interest revenue recorded by VGK for the year ended December 31, 2019?

C. What is the balance in interest receivable on VGK's books on December 31, 2019?

Related Book For answer-question

Advanced Accounting

ISBN: 978-0538480284

11th edition

Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng

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Posted Date: Apr 13, 2023 12:12 AM

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VGK Corporation gave a $850,000 loan to MTL Inc. on March 1, 2019. The interest rate on

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Expert Answer:

A To calculate the size of each payment made by MTL Inc we can use the formula for the present value ... View the full answer

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