Asked Feb 4, 2020

Green Industries purchased a machine from Cyan Corporation on October 1, 2021. In payment for the $144,000 purchase, Green issued a one-year installment note to be paid in equal monthly payments at the end of each month. The payments include interest at the rate of 12%. Monthly installment payments are closest to: 

Multiple Choice

A. $12,000.
B. $12,445.
C. $12,668.
D. $12,794.

Expert Answer

Step 1

Calculate the monthly interest rate.

Accounting homework question answer, step 1, image 1


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