Question
John borrowed $10,000 and agreed to pay it off with annual payment for the next 4 years. The payment is due at the end of
John borrowed $10,000 and agreed to pay it off with annual payment for the next 4 years. The payment is due at the end of each year and interest is 6% compounded annually.
a. What is his annual payment?
b. How much is the interest in the 1st year?
c. What is the principal repaid after 1st year?
d. How much he still owed after 1st year?
e. How much is the interest in the 2nd year?
f. What is the principal repaid in 2nd year?
g. Please complete the amortization table.
h. What is the total financing cost?
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Auditing Cases An Interactive Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
4th Edition
0132423502, 978-0132423502
