Ask Question
8 December, 21:03

Celebrate Holidays Company signed a 77 %, 1010minus-year note for $ 170 comma 000$170,000. The company paid an installment of $ 2 comma 500$2,500 for the first month. What portion of the first monthly payment is principal? (Do not round any intermediate calculations, and round your final answer to the nearest dollar.)

+2
Answers (1)
  1. 8 December, 21:15
    0
    The first monthly payment is $1512

    Explanation:

    Given,

    Company signed a 7 %

    $2,500 for the first month

    Now,

    Interest expense for 1 month = ($170,000 x 7%) x (1/12) = $988

    Total payment = $2,500

    Principal amount ($2,500 - $988) = $1512
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Celebrate Holidays Company signed a 77 %, 1010minus-year note for $ 170 comma 000$170,000. The company paid an installment of $ 2 comma ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers