Beta Company borrowed $20,000 at 8% for 6 years.The loan requires annual payments of $4,326.31.When Beta Company makes the first annual payment:
1.how much of the first payment will be interest?
2.how much of the payment will be used to reduce the principal of the loan?

Question

Quizplus · Accepted Answer

The Answer of Beta Company borrowed $20,000 at 8% for 6 years.The loan requires annual payments of $4,326.31.When Beta Company makes the first annual payment:
1.how much of the first payment will be interest?
2.how much of the payment will be used to reduce the principal of the loan?

Beta Company Borrowed $20,000 at 8% for 6 Years