Question
when trying to figure out how to Prepare a partial amortization I tried to divide the 6% interest into 12 months I got .5%, but
when trying to figure out how to Prepare a partial amortization
I tried to divide the 6% interest into 12 months I got .5%, but that doesn't seem right. And I multiply 1543 * by .05= 77.55. Is this right as the reduction amount?
Use of an Amortization Table
Glen Pool Club, Inc., has an installment loan outstanding with a current balance of $150.000. The company makes monthly installments of $1,543, which include interest computed at an annual rate of 6 percent.
Prepare a partial amortization table showing (1) the original balance of this loan, and (2) the allocation of the first two monthly payments between interest expense and the reduction in the loan's unpaid balance. (Round to the nearest dollar.)
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