Everglades Consultants takes out a loan in the amount of $375,000 on April 1. The terms of
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Everglades Consultants takes out a loan in the amount of $375,000 on April 1. The terms of the loan include a repayment of principal in eight, equal installments, paid annually from the April 1 date. The annual interest rate on the loan is 5%, recognized on December 31.
1 Compute the interest recognized as of December 31 in year 1.
2 Compute the principal due in year 1.
Related Book For
Financial Institutions Management A Risk Management Approach
ISBN: 978-0071051590
8th edition
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
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