BPI granted a 10-year loan to a borrower in the amount of ₱1,500,000 with stated interest rate of 6%. Payments are due monthly and are computed to be ₱16,650. The bank incurred ₱40,000 of direct loan origination cost and ₱20,000 of indirect loan origination cost. In addition, the bank charged the borrower a 4-point nonrefundable loan origination fee. What is the carrying amount of the loan receivable to be reported initially by the bank?

BPI granted a 10-year loan to a borrower in the amount of ₱1,500,000 with stated interest rate of 6%. Payments are due monthly and are computed to be ₱16,650. The bank incurred ₱40,000 of direct loan origination cost and ₱20,000 of indirect loan origination cost. In addition, the bank charged the borrower a 4-point nonrefundable loan origination fee. What is the carrying amount of the loan receivable to be reported initially by the bank?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 17P

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