Installment Notes ABC bank loans $250,000 to Yossarian to purchase a new home. Yossarian will...
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Accounting
Installment Notes
ABC bank loans $250,000 to Yossarian to purchase a new home. Yossarian will repay the note in equal monthly payments over a period of 30 years. The interest rate is 12%.
Required:
If the monthly payment is $2,571.53, how much of the first payment is interest expense and how much is principal repayment? (Note: Round to the nearest cent.)
a. Interest expense: $
b. Principal repayment: $
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