What is the interest income for 2021? Philippine Bank granted a loan to a borrower on January 1, 2021. The interest on the loan is 8% payable annually starting December 31, 2023. Principal amount Origination fee charged against the borrower 3,000,000 100,000 Direct origination cost incurred 260,300 After considering the origination fee charged to the borrower and the direct origination cost incurred, the effective rate on the loan is 6%. a. 240,000 O b. 189,618 O c. 252,824 O d. 180,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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What is the interest income for 2021?
Philippine Bank granted a loan to a borrower on January 1, 2021. The interest on the loan is 8% payable
annually starting December 31, 2023.
Principal amount
Origination fee charged against the borrower
Direct origination cost incurred
3,000,000
100,000
260,300
After considering the origination fee charged to the borrower and the direct origination cost incurred,
the effective rate on the loan is 6%.
a. 240,000
O b. 189,618
c. 252,824
O d. 180,000
Transcribed Image Text:What is the interest income for 2021? Philippine Bank granted a loan to a borrower on January 1, 2021. The interest on the loan is 8% payable annually starting December 31, 2023. Principal amount Origination fee charged against the borrower Direct origination cost incurred 3,000,000 100,000 260,300 After considering the origination fee charged to the borrower and the direct origination cost incurred, the effective rate on the loan is 6%. a. 240,000 O b. 189,618 c. 252,824 O d. 180,000
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