ACTIVITY 4.6 BUSINESS APPLICATIONS Solve and show your solution and explanations in a separate paper. 1. CM Company borrowed P 2 000 000 from a bank on June 30, 2015. The loan has an annual interest rate of 10% and the principal is payable at the end of every quarter amounting to P 25 000. The first quarterly payment will be on September 30, 2015. Prepare an amortization schedule for 2015 until the loan is fully paid on June 30, 2017. How much interest expense is incurred in 2015 and 2016 with respect to this loan?
ACTIVITY 4.6 BUSINESS APPLICATIONS Solve and show your solution and explanations in a separate paper. 1. CM Company borrowed P 2 000 000 from a bank on June 30, 2015. The loan has an annual interest rate of 10% and the principal is payable at the end of every quarter amounting to P 25 000. The first quarterly payment will be on September 30, 2015. Prepare an amortization schedule for 2015 until the loan is fully paid on June 30, 2017. How much interest expense is incurred in 2015 and 2016 with respect to this loan?
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.9AMCP
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