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25 January, 16:59

On July 1, Shady Creek Resort borrowed $330,000 cash by signing a 10-year, 12% installment note requiring equal payments each June 30 of $58,405. What amount of interest expense will be included in the first annual payment

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  1. 25 January, 17:20
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    Borrowed Amount = $330,000

    Interest Rate = 12%

    Interest Expense = Borrowed amount * Interest Rate

    Interest Expense = $330,000 * 12%

    Interest Expense = $39,600
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