A. CM Company borrowed 2000,000 pesos from a bank on June 30, 2015. The loan has an annual interest rate 10% and the principal is payable at the end of every quarter amounting to 250,000 pesos. The first quarterly payment will be on September 30, 2015 prepare an amortization schedule for 2015 until the loan is fully paid on September 30, 2017. How much interest expense is incurred in 2015 and 2016 with respect to this loan?

A. CM Company borrowed 2000,000 pesos from a bank on June 30, 2015. The loan has an annual interest rate 10% and the principal is payable at the end of every quarter amounting to 250,000 pesos. The first quarterly payment will be on September 30, 2015 prepare an amortization schedule for 2015 until the loan is fully paid on September 30, 2017. How much interest expense is incurred in 2015 and 2016 with respect to this loan?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 14P

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