On December 31, 2020, Sack Port Ventures Inc. borrowed $103,000 by signing a four-year, 8.0% installment note. The note requires annual payments of accrued interest and equal amounts of principal on December 31 of each year from 2021 through 2024. a. How much principal will be included in each of the four payments? Amount of principal in each payment

Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 11E
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On December 31, 2020, Sack Port Ventures Inc. borrowed $103,000 by signing a four-year, 8.0% installment note. The note requires
annual payments of accrued interest and equal amounts of principal on December 31 of each year from 2021 through 2024.
a. How much principal will be included in each of the four payments?
Amount of principal in each payment
Transcribed Image Text:On December 31, 2020, Sack Port Ventures Inc. borrowed $103,000 by signing a four-year, 8.0% installment note. The note requires annual payments of accrued interest and equal amounts of principal on December 31 of each year from 2021 through 2024. a. How much principal will be included in each of the four payments? Amount of principal in each payment
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