q1.A three-year, 6%, $42,000 note payable is issued on January 1. Terms include fixed annual principal payments of $14,000, plus interest on the outstanding balance at the end of each year. How much is the total interest expense over the life of the note payable?

a)

$5,040

b)

$210

c)

$1,260

d)

$2,520

On March 1, Brutto Corp. issues a 3 year, 5%, $60,000 note payable. The terms of the note include monthly blended principal and interest payments of $1,799. How much would be the remaining balance of the principal after the first blended payment?

Question 2 options:

a)

$58,201

b)

$57,000

c)

$58,451

d)

$55,201

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