Pamela borrowed $12,000 for investment purposes on March 12 on a demand note providing for a variable rate of interest and payment of any accrued interest on December 31. She repaid $1,230 on June 17, $1,880 on September 10, and $3,460 on November 8. How much is the final payment on December 31 if the rate of interest was 11.5% on March 12, 8.75% effective August 1, and 6.45 % effective October 1? (Use the Declining Balance Approach)

Pamela borrowed $12,000 for investment purposes on March 12 on a demand note providing for a variable rate of interest and payment of any accrued interest on December 31. She repaid $1,230 on June 17, $1,880 on September 10, and $3,460 on November 8. How much is the final payment on December 31 if the rate of interest was 11.5% on March 12, 8.75% effective August 1, and 6.45 % effective October 1? (Use the Declining Balance Approach)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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