Learning Outcome 5 Trek Compan y signed a 5 10y r note for 1

Learning Outcome 5) Trek Compan y signed a 5%, 10-y r note for $150,000. The company paid as the installment for the first mo nth. Wha t portion of the first monthly payment will be applied to the loan p rincipa ea

Solution

Calculate Interest Expenses In First Monthly Payment : Interest Expenses = Principal Amount*Rate*Time Interest Expenses = 150000*5%*1/12 = 625 Hecne , princiapal Part will be ( $1975-$625)=$1350