On January 1, 2021, Gundy Enterprises purchases an office building for $228,000, paying $48,000 down and...

Transcribed Image Text:

On January 1, 2021, Gundy Enterprises purchases an office building for $228,000, paying $48,000 down and borrowing the remaining $180,000, signing a 8%, 10-year mortgage. Installment payments of $2,183.90 are due at the end of each month, with the first payment due on January 31, 2021. 4. Total payments over the 10 years are $262,068 ($2,183.90 120 monthly payments). How much of this is interest expense and how much is actual payment of the loan? Interest expense Actual payments on the loan On January 1, 2021, Gundy Enterprises purchases an office building for $228,000, paying $48,000 down and borrowing the remaining $180,000, signing a 8%, 10-year mortgage. Installment payments of $2,183.90 are due at the end of each month, with the first payment due on January 31, 2021. 4. Total payments over the 10 years are $262,068 ($2,183.90 120 monthly payments). How much of this is interest expense and how much is actual payment of the loan? Interest expense Actual payments on the loan