On January 1, 2016, Demarest Company purchased equipment and signed a six-year mortgage note for$80,000 at 15%
The note will be paid in equal annual installments of $21,139, beginning January 1, 2017. Calculate the portion of principal amount paid on the third installment. (Round your answer to the nearest whole number.)
A) $12,086
B) $12,000
C) $21,139
D) $9,053
A .Beginning
Balance Principal
Payment Interest
Expense Total
Payment Ending
Balance
01/01/2015 $80,000
01/01/2016 $80,000 $9,139 $12,000 $21,139 70,861
01/01/2017 70,861 10,510 10,629 21,139 60,351
01/01/2018 60,351 12,086 9,053 21,139 48,265
You might also like to view...
Morgan was hired by an insurance company after she graduated from college. Upon completion of a training program, Morgan was assigned to a territory where she adjusts claims of the insurer's policyowners. Morgan is a(n)
A) public adjustor. B) staff claims representative. C) agent. D) independent adjustor.
The systems manager of an organization issues a request to the purchasing manager for the purchase of 15 new desktop computers. This document is an example of a(n) ________
A) request tracker B) purchase requisition C) term sheet D) itemized bill