Trek Holidays Company signed a 9%, 10-year note for $154,000. The company paid an installment of $2,900 for the first month. What portion of the first monthly payment is principal? (Round your answer to the nearest whole number.)
A) $1,745
B) $4,645
C) $1,540
D) $15,733
A .Interest expense for 1 month ($154,000 x 9%) x (1/12 ) $1,155
Total payment 2,900
Principal amount ($2,900 - $1,155 ) $1,745
You might also like to view...
Presently, no regulatory agency, such as the Securities and Exchange Commission or the Financial Accounting Standards Board, accepts responsibility for determining either the content of financial ratios or the format of presentation in annual reports
Indicate whether the statement is true or false
A nonprofit chief executive officer uses a newsletter as his organization’s primary communication tool to announce the organizational change. According to Kotter, Brandon’s communication channel may result in _______.
A. drift B. complacency C. too much control D. under communication
The U.S. government will pay Bringle $2,500,000 each six months, equal to 2.5% of the $100 million face amount of the treasury bonds (5% annual coupon rate, paid in two installments each year), and will repay the $100 million at the end of five years. At the time Bringle purchases the bonds, the market prices these bonds to yield Bringle 6% annually (3% each six months). The bonds are classified
as held to maturity. Bringle will record the following entry. a. Marketable Securities..............................95,734,898 Cash..........................................................................95,734,898 b. Marketable Securities............................100,000,000 Cash........................................................................100,000,000 c. Cash........................................................ 95,734,898 Marketable Securities...............................................95,734,898 d. Cash.................................................... 100,000,000 Marketable Securities...............................................95,734,898 e. Cash.......................................................105,907,059 Marketable Securities ............................................105,907,059
According to the mainstream economics school of thought, the Wagner Act of 1935:
A. Encouraged conflict to develop between management and labor. B. Could not adequately challenge the power of management. C. Protected the monopoly power of labor. D. Was benign in its effect and would not significantly change labor-management relations.