Answered: A loan, amortized over 7 years, is…

A loan, amortized over 7 years, is repaid by making payments of $1,600 at the end of every month. If the interest rate is 3.25% compounded semi-annually, what

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PB: Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at...

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Question

How is this wrong?

A loan, amortized over 7 years, is
repaid by making payments of
$1,600 at the end of every month.
If the interest rate is 3.25%
compounded semi-annually, what
was the loan principal?
$120,153.92 (X)
Round to the nearest cent

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