12 chapter 15.

Campus Flights takes out a bank loan in the amount of $240,000 on March 1 . The terms of the loan include a repayment of principal in ten equal installments, paid annually from March 1 . The annual interest rate on the loan is 9 percent, recognized on December 31. A. Compute the interest recognized as of December 31 in year 1 . B. Compute the principal due in year 1