Manter Inc. needed som long-term financing, so arranged for a 300,000, 20 year m

Question

Manter Inc. needed som long-term financing, so arranged for a 300,000, 20 year mortgage on December, 31, 2007. The interest rate is six percent per year, with 30,000 ( rounded ) payments made at the end of each year, starting December 31, 2008

Questions:

A. What is the amount of interest expense related to this loan for 2008?
B.What amopunt of liabilty should appear on the December 31, 2008 balance sheet?
C.What is the amount of interest expense trelated to this loan for 2009?
D.What amopunt of liabilty should appear on the December 31, 2009 balance sheet?

Explanation / Answer

A. 300,000*.06 = 18,000 B. principal - payment + interest = 300,000 - 30,000 + 18,000 = 288,000 C. 288,000*.06 = 17,280 D. 288,000 - 30,000 + 17,280 = 275,280

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.