Chase Hunford negotiated a $40,000 bank loan for 240 days at a bank rate of 10%.The bank deducted the interest in advance.
Required (show your calculations):
a)Calculate the amount of interest charged by the bank.
b)Calculate the amount of cash Chase received from the bank.
c)Calculate the effective interest rate charged by the bank.
d)Prepare Chase's journal entry for the transaction.

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The Answer of Chase Hunford negotiated a $40,000 bank loan for 240 days at a bank rate of 10%.The bank deducted the interest in advance.
Required (show your calculations):
a)Calculate the amount of interest charged by the bank.
b)Calculate the amount of cash Chase received from the bank.
c)Calculate the effective interest rate charged by the bank.
d)Prepare Chase's journal entry for the transaction.

Chase Hunford Negotiated a $40,000 Bank Loan for 240 Days