Suppose Arnie sells 2,000 golf balls to Jack on credit. Jack agrees to pay Arnie $1,000 plus 6 percent interest on the principal still owed per month for a period of 24 months. After two months, Jacks cash flow is impaired by an unexpected downturn in his business. Arnie and Jack then agree to modify the contract to allow Jack to pay a smaller monthly payment ($500 per month), but at the same interest rate until the balance is paid