Answered

Westonci.ca is the Q&A platform that connects you with experts who provide accurate and detailed answers. Ask your questions and receive precise answers from experienced professionals across different disciplines. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.

Davis Corporation borrowed $50,000 on January 1, Year 1. The loan is for a 5-year period and has an annual interest rate of 9%. At the end of each year, Davis will make a payment of $7,791, which includes both principal and interest. The amount of the payment for Year 1 that is interest expense is $4,500. Group startsTrue or False

Sagot :

The amount of the payment for Year 1 that is interest expense is $4,500.

The interest paid on loan is a function of the interest rate and the amount borrowed. In order to determine the interest paid, the interest rate would be multiplied by the amount borrowed.

Interest = interest rate x amount borrowed

  • interest rate = 9%
  • amount borrowed = $50,000

9% x $50,000

0.09 x $50,000 = $4,500

A similar answer was answered here: https://brainly.com/question/16413167

Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Thank you for trusting Westonci.ca. Don't forget to revisit us for more accurate and insightful answers.