Question
Water Works International is borrowing with a discounted interest loan. They receive a $20,000 discount interest loan for 8 months at an 11% interest rate.
Water Works International is borrowing with a discounted interest loan. They receive a $20,000 discount interest loan for 8 months at an 11% interest rate. What is the (a) upfront interest payment and (b) available remaining cash?
A. (a) = $1,466.67 : (b) = $18,533.33
B. (a) = $1,556.67 : (b) = $18,533.33
C. (a) = $1,566.67 : (b) = $18,933.33
D. (a) = $1,466.67 : (b) = $18,933.33
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Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
5th edition
9780470418239, 470239808, 9780470239803, 470418230, 978-1118128169
