Question: Q3: USE THE FOLLOWING INFORMATION FOR THIS QUESTION: Installment note payable borrowed from the bank $332,000 Present value interest factor from table 2.88388 Signed for
Q3:
USE THE FOLLOWING INFORMATION FOR THIS QUESTION:
| Installment note payable borrowed from the bank | $332,000 |
| Present value interest factor from table | 2.88388 |
| Signed for | 3 years |
| Annual interest rate | 2.0% |
| Payments are made | Annually |
The amount of the SECOND periodic monthly payment that is attributable to REDUCTION OF PRINCIPAL equals what amount?
Group of answer choices
- $115,123
- $6,640
- $108,482
- $110,652
- zero
- unable to determine
Q4:
USE THE FOLLOWING INFORMATION FOR THIS QUESTION:
| Installment note payable borrowed from the bank | $287,000 |
| Present value interest factor from table | 2.88388 |
| Signed for | 3 years |
| Annual interest rate | 2% |
| Payments are made | Annually |
The outstanding loan balance at the end of year 2 equals what amount?
Group of answer choices
- $99,518
- $5,740
- $193,221
- $287,000
- $97,567
- zero
- unable to determine
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