Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. going places adventure travel signed a 14%, 10-yea

Going places adventure travel signed a 14%, 10-year note for $152000. The company paid an installment...

Free

80.2K

Verified Solution

Question

Accounting

Going places adventure travel signed a 14%, 10-year note for$152000. The company paid an installment of $2200 for the firstmonth. After the first payment, what is the principlebalance?

Answer & Explanation Solved by verified expert
4.4 Ratings (523 Votes)

After the first payment, the principle balance is $ 1,51,573.33
Working:
# 1 Interest for the first month = Beginning note value * Interest rate
= $ 1,52,000.00 * 14% *1/12
= $       1,773.33
# 2 First month's Installment = $       2,200.00
Less interest $       1,773.33
Principal repayment $           426.67
# 3 After the first payment, the principle balance
= Beginning principal balance - Reduction in principal from first month's installment payment
= $ 1,52,000.00 - $ 426.67
= $ 1,51,573.33

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Medical Sciences
1.2K views

Write one to two paragraphs about the most common joint injuries. Write a one-page report about crystal-induced...

Biology
1.2K views

Katherine develops the cladogram below based on patterns of common ancestry clubmosses spikemosses D Katherine...

Basic Math
1.2K views

Let a curve be defined as siny = x + y. Determine which of the...

Statistics
1.2K views

When survey data indicated that a coffee company needed to improve its package sealing process...

Calculus
1.2K views

40 Simplify the following 123 A 1 B 1 C i D i

Accounting
1.2K views

According to Modern Portfolio Theory total risk is reduced due to High Correlation a reduction...

Accounting
1.2K views

In year 2, the farmers decided to increase the value of the cow category to...

Accounting
1.2K views

The Regal Cycle Company manufactures three types of bicyclesa dirt bike, a mountain bike, and...

Finance
1.2K views

Jeek 2&3: Online Assignment 1: Connect Chapter 3 Probl... 6 Saved 7 The King Corporation...

Finance
1.2K views

Bellwood Corp. is comparing two different capital structures. Plan I would result in 28,000 shares...

Accounting
1.2K views

ACCT 2123 Assignment 4 Answer the following questions and submit in the text box in...

Accounting
1.2K views

Two grams of musk oil are required for each bottle of Mink Caress, a very...