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$6,000 loan is being repaid over 5 years with 60 monthly payments of $116.00. The...

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Accounting

$6,000 loan is being repaid over 5 years with 60 monthly payments of $116.00. The total dollar amount of interest to be paid using the amortization method is $960.00.

Under the sum of digits method which of the following statements is/are true?

(I) The principal portion of the fourth payment equals $86.10

(II) The loan balance at the end of 3 years equals $2,626.62

  • A.

    II only

  • B.

    I and II

  • C.

    I only

  • D.

    neither statement is true

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