Question
On October 1 st , Brookster Inc. signed a 4-year, $100,000 note payable to a local bank to purchase new equipment. The note calls for
On October 1st, Brookster Inc. signed a 4-year, $100,000 note payable to a local bank to purchase new equipment. The note calls for interest at an annual rate of 12 percent. Below is a portion of the amortization table:
Amortization Table
(12%, 4-year Note Payable for $100,000; Payable in 48 Monthly Installments of $2,633)
Interest Period | Payment Date | Monthly Payment | Interest Expense | Principal Reduction | Unpaid Balance |
Issue Date
| Oct. 1 | -------- | -------- | -------- | $100,000 |
1
| Nov. 1 | $2,633 | $1,000 | $1,633 | $ 98,367 |
2
| Dec. 1 | $2,633 | $984 | $1649 | $ 96,718 |
3
| Jan. 1 |
|
|
|
|
4
| Feb. 1 |
|
|
|
|
Required: Complete the amortization table.
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