If a $27,000 loan is repaid by end of month payments of $640 and interest is at 9% compounded monthly, how much principal will be repaid during the first year? O $5,472.07 O $2,005.36 O $6,120.06 O $3,986.66

If a $27,000 loan is repaid by end of month payments of $640 and interest is at 9% compounded monthly, how much principal will be repaid during the first year? O $5,472.07 O $2,005.36 O $6,120.06 O $3,986.66

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PB: Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at...

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Question

If a $27,000 loan is repaid by end of month payments of $640 and interest is at 9%
compounded monthly, how much principal will be repaid during the first year?
O $5,472.07
O $2,005.36
O $6,120.06
O $3,986.66
$3,635.45

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