A loan of $21,919 was repaid at the end of 18 months. What size repayment check (principal and interest) was written, if a 10.7% annual rate of interest was charged? The amount of the repayment check was $n. (Round to two decimal places.)

A loan of $21,919 was repaid at the end of 18 months. What size repayment check (principal and interest) was written, if a 10.7% annual rate of interest was charged? The amount of the repayment check was $n. (Round to two decimal places.)

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

Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.

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A loan of $21,919 was repaid at the end of 18 months. What size repayment check (principal and interest) was written,
if a 10.7% annual rate of interest was charged?
The amount of the repayment check was $n. (Round to two decimal places.)

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