Question: Presented below is a partial amortization schedule for a three - year installment note requiring monthly payments of $ 1 , 1 2 8 .

Presented below is a partial amortization schedule for a three-year installment note requiring monthly payments of $1,128.11.
(1)
Date(2)
Cash Paid(3)
Interest Expense(4)
Decrease in Carrying Value(5)
Carrying ValueCarrying Value Interest Rate(2)(3)Prior Carrying Value (4)11/1/2024$36,000.0011/30/2024$1,128.11$240.00$888.1135,111.8912/31/20241,128.11234.08894.0334,217.8610/31/20271,128.117.471,120.640
1. What is the principal amount of the note?
2. What is the total number of monthly payments?
3. What is the total cash paid over the entire period of the note? (Round your answer to 2 decimal places.)
4. What is the total amount of interest paid over the entire period of the note? (Do not round your intermediate calculations. Round your answer to 2 decimal places.)
5. The portion of the monthly payment that reduces the carrying value (increases/decreases) over time.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!