   # Campus Flights takes out a bank loan in the amount of \$200,500 on March 1. The terms of the loan include a repayment of principal in ten equal installments, paid annually from March 1. The annual interest rate on the loan is 8%, recognized on December 31. (Round answers to the nearest whole dollar if needed.) A. Compute the interest recognized as of December 31 in year 1 rounded to the whole dollar. B. Compute the principal due in year 1. FindFindarrow_forward

### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685

#### Solutions

Chapter
Section FindFindarrow_forward

### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685
Chapter 12, Problem 1EA
Textbook Problem
1 views

## Campus Flights takes out a bank loan in the amount of \$200,500 on March 1. The terms of the loan include a repayment of principal in ten equal installments, paid annually from March 1. The annual interest rate on the loan is 8%, recognized on December 31. (Round answers to the nearest whole dollar if needed.)A. Compute the interest recognized as of December 31 in year 1 rounded to the whole dollar.B. Compute the principal due in year 1.

To determine

(a)

Concept introduction:

Interest is paid by the loan taker to the person who gives loan to him. For calculation of interest on loan company wants interest rate, time period and amount of loan.

Installments include both part of interest and principle of loan. In starting there is more interest in installments but it reduces as the period of loan passes.

To calculate:

Interest recognized as of December 31.

### Explanation of Solution

 Calculation of Interest Rate Loan Amount 200500 Interest Rate 8% Periods
To determine

Concept introduction:

Interest is paid by the loan taker to the person who gives loan to him. For calculation of interest on loan company wants interest rate, time period and amount of loan.

Installments include both part of interest and principle of loan. In starting there is more interest in installments but it reduces as the period of loan passes.

To calculate:

Principle due at end of year 1.

### Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

#### The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Find more solutions based on key concepts
TERM OF A NOTE Calculate total time in days for the following notes. (Assume there are 28 days in February.)

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

CASH CONVERSION CYCLE Primrose Corp has 15 million of sales, 2 million of inventories, S3 million of receivable...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Explain how utility is related to form utility.

Foundations of Business (MindTap Course List)

Does interest rate parity imply that interest rates are the same in all countries?

Fundamentals of Financial Management (MindTap Course List) 