Campus Flights takes out a bank loan in the amount of $200,500 on March 1, 2019. The terms of the loan include a repayment of principal in ten equal installments, paid annually from March 1. The annual interest rate on the loan is 8%, recognized on December 31, the fiscal year-end date.
Campus Flights takes out a bank loan in the amount of $200,500 on March 1, 2019. The terms of the loan include a repayment of principal in ten equal installments, paid annually from March 1. The annual interest rate on the loan is 8%, recognized on December 31, the fiscal year-end date.
The interest recognized for the first payment date as of December 31, 2019 is $13,267.
The interest recognized for the year 2020 as of the first payment date is $16,040.
The principal due on the first payment date, March 1, 2020 is $186,659.
1. Compute the interest recognized for the second payment date as of December 31, 2020. _______________
2. Compute the total interest for the year 2020. __________
IMPORTANT: Please count your months carefully as the note's "year" crosses between two fiscal years.
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