Expanding Corporation financed a $500,000 expansion by mortgaging their head office building for seven years. They...

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Expanding Corporation financed a $500,000 expansion by mortgaging their head office building for seven years. They negotiated a rate of 5% per annum. They will make equal annual payments at the end of the year. Note: if needed, complete the amortization table for the mortgage using the effective interest method What is the amount of the principal payment in Year 2 Multiple Choice $86,410 $64,480 $71,429 None of the other alternatives are correct $25,000 Expanding Corporation financed a $500,000 expansion by mortgaging their head office building for seven years. They negotiated a rate of 5% per annum. They will make equal annual payments at the end of the year. Note: if needed, complete the amortization table for the mortgage using the effective interest method What is the amount of the principal payment in Year 2 Multiple Choice $86,410 $64,480 $71,429 None of the other alternatives are correct $25,000

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5 of Beginning Bal Amount Year Beginning Balance Interest Principal EM... View the full answer