Question
Ayayai Manufacturing Inc. intends to finance the acquisition of new manufacturing equipment that costs $172,000 by issuing a five-year, 3.50% note payable. The note would
Ayayai Manufacturing Inc. intends to finance the acquisition of new manufacturing equipment that costs $172,000 by issuing a five-year, 3.50% note payable. The note would be issued on January 1, 2024. Ayayai's year end is December and the note would require annual pavments on December 31. The finance company has given Ayayai the choice of making blended payments of $38,095, or making fixed payments of $34,400 plus interest.
Assuming the blended payment option is selected, prepare the amortization table for the first two years of the notes payable.
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