On 1 January 2017,Bratios Company purchases equipment and signs a 6-year mortgage payable for $93,000 at 15%.The mortgage will be paid in equal annual instalments of $24,574,beginning 1 January 2018.Calculate the portion of principal amount paid on the third instalment.(Round to the nearest dollar. )
A)$14,050
B)$10,524
C)$24,574
D)$13,950

Question

Quizplus · Accepted Answer

The third instalment's principal portion is calculated by first determining the interest for the third year, then subtracting it from the total instalment. The interest for the third year is calculated on the remaining principal after the first two instalments. The principal portion of the third instalment is $14,050.

On 1 January 2017,Bratios Company Purchases Equipment and Signs a 6-Year