Koenma borrows 500,000 at 15% compounded annually, and he agree to pay the loan in 18 equal annual payments. How much of the original principal is still unpaid after he Koenma made the 10th payment. P402,040 P432,143 P366,135 P341,918

Koenma borrows 500,000 at 15% compounded annually, and he agree to pay the loan in 18 equal annual payments. How much of the original principal is still unpaid after he Koenma made the 10th payment. P402,040 P432,143 P366,135 P341,918

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1EA: Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest...

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Concept explainers

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.

Question

Koenma borrows 500,000 at 15% compounded annually, and he agree to pay the
loan in 18 equal annual payments. How much of the original principal is still
unpaid after he Koenma made the 10th payment.
P402,040
O P432,143
P366,135
P341,918

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