Answered: A loan of $20,483 was repaid at the end…

A loan of $20,483 was repaid at the end of 11 months. What size repayment check (principal and interest) was written, if a 7.8% annual rate of interest was charged?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 16Q: Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual...

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

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A loan of $20,483 was repaid at the end of 11 months. What size repayment check (principal and interest) was written, if a 7.8% annual rate of interest was charged?

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