Camp Elim obtains a $125,000, 6%, five-year loan for a new camp bus on January 1, 2021. What amount will be recorded for interest expense for the first month's payment on January 31, 2021?
A) $625
B) $125
C) $7,500
D) $1,000
Answer: A
Camp Elim obtains a $125,000, 6%, five-year loan for a new camp bus on January 1, 2021. If the monthly payment is $2,416.60, by how much will the carrying value decrease when the first payment is made on January 31, 2021?
A) $1,791.60
B) $625.00
C) $2,416.60
D) $1,000.60
Answer: A
A company issues a $200,000, 5%, six-year note on January 1, 2021. What amount will be recorded for interest expense for the first month's payment on January 31, 2021?
A) $1,000.00
B) $138.89
C) $833.33
D) $694.44
Answer: C
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