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Kylie, Inc. is buying a camel. The original cost on January 1, 2018 was $10,000. Kylie put $1,500 down and is making annual payments on
Kylie, Inc. is buying a camel. The original cost on January 1, 2018 was $10,000. Kylie put $1,500 down and is making annual payments on December 31st of $1,838.68 which include interest at 8%. If Kylie is properly amortizing this purchase, the interest expense for 20X8 (first year) is $ 680.00. Assuming Kylie is amortizing the loan correctly, the Principal Balance at the end of 20X9 (end of the second year) would have been
A) $ 7,341.32
B) $ 6,089.95
C) $ 4,738.47
D) $ 4,822.64
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