Solution
David answered on
Dec 26 2021
(a)
Period
Cash
Payment
(A)
Interest
Expense
(B) = (D) X 8%
Principal
Reduction
(C) = (A) – (B)
Balance
(D) = (D) – (C)
July1, 2013 $140,000
June 30, 2014 $35,064 $11,200 $ 23,864 116,136
June 30, 2015 35,064 9,291 25,773 90,363
June 30, 2016 35,064 7,229 27,835 62,528
June 30, 2017 35,064 5,002 30,062 32,466
June 30, 2018 35,064 2,598* 32,466 0
Total 175,320 35,320 140,000
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