5.

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 instaliments, 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 . x B. Compute the principal due in year 1 . x Feesback T Check My Work A. Remember that the interest formula is principal x rate x time. Interest is a function of time that has passed. Refer to the textbook for examples of the formula applied. B. The principal payment in the first year is a function of the time period served in that year