Problem 15-04A a-c (Part Level Submission) (Video) Sandhill Electronics issues a

Question

Problem 15-04A a-c (Part Level Submission) (Video) Sandhill Electronics issues a $352,500, 596, 15-year mortgage note on December 31, 2019. The proceeds from the note are to be used in financing a new research laboratory. The terms of the note provide for annual installment payments, exclusive of real estate taxes and insurance, of $45,650. Payments are due on December 31. Your answer is partially correct. Try again. Prepare an installment payments schedule for the first 4 years. (Round answers to o decimal places, e.9 Annual Interest Period Cash Payment Interest Expense Reduction of Principal Principal Balance Issue Date 352500 45650 17625 28025 324475 2 45650 16224 29426 295049 45650 14753 30897 264152 45650 13208 32642 231710 Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Solution a:

Solution b:

Installment payment schedule for first 4 years - Sandhill Electronics Annual interest period Cash payment Interest Expense (Principal balance * 5%) Reduction of Principal Principal Balance Issue Date $352,500 1 $45,650 $17,625 $28,025 $324,475 2 $45,650 $16,224 $29,426 $295,049 3 $45,650 $14,752 $30,898 $264,151 4 $45,650 $13,208 $32,442 $231,709

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---