Use the following to answer questions 25-27 On January 1, year 1, the company borrows $45,000 to purchase a new vehicle by agreeing to a 7%, 5-year note with the bank. Payments of $891.05 are due at the end of each month with the first installment due on January 31, year 1. ROUND YOUR ANSWERS TO THE NEAREST CENT (2 decimal places). 25. After the first car payment (installment) is made the amount owed on the vehicle would be: $ 26. Determine interest expense for the second car payment $ 27. After the Company pays all of the car payments, how much do they owe at the end of the 5 years? $
Use the following to answer questions 25-27 On January 1, year 1, the company borrows $45,000 to purchase a new vehicle by agreeing to a 7%, 5-year note with the bank. Payments of $891.05 are due at the end of each month with the first installment due on January 31, year 1. ROUND YOUR ANSWERS TO THE NEAREST CENT (2 decimal places). 25. After the first car payment (installment) is made the amount owed on the vehicle would be: $ 26. Determine interest expense for the second car payment $ 27. After the Company pays all of the car payments, how much do they owe at the end of the 5 years? $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Step 1: Introduction of notes payable
VIEWStep 2: Requirement 25 - Computation of the amount owed on the vehicle after the first payment
VIEWStep 3: Requirement 26 - Computation of the interest expense for the second payment
VIEWStep 4: Requirement 27 - Computation of the amount owed on the vehicle after 5 years
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