Zack borrowed $30,000.00 at 9% on July23, 2020. He repaid $15,000.00 onOctober 21 and $10,000.00 on December16. Determine the final payment requiredon February 12, 2021 using the Merchant'sRule.

Time value of money(TVM) means that the amount received in the present period will have more…

Answered: Determine the final payment

Business

Finance

Determine the final payment

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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Concept explainers

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.

Question

Zack borrowed $30,000.00 at 9% on July
23, 2020. He repaid $15,000.00 on
October 21 and $10,000.00 on December
16. Determine the final payment required
on February 12, 2021 using the Merchant's
Rule.

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