Adventure Travel signed a 14%,10-year note for $152,000.The company paid an installment of $2200 for the first month.After the first payment,what is the principal balance? (Do not round any intermediate calculations,and round your final answer to the nearest dollar.)

Question

Quizplus · Accepted Answer

The first month's interest is calculated as $152,000 * 14% / 12 = $1,773.33. The principal portion of the payment is $2,200 - $1,773.33 = $426.67. The new principal balance is $152,000 - $426.67 = $151,573.33, rounded to $151,573.

Adventure Travel Signed a 14%,10-Year Note for $152,000