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Dan Dayle started a business by issuing an $83,000 face-value note to First State Bank on January 1, Year 1. The note had anc. What portion of the December 31, Year 2, payment is applied to interest expense and principal? (Round your answers to the

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Answer #1

a) Interest expense = 83000*6% = 4980

Principal = 19704-4980 = 14724

b) Principal balance , January 1, Year 2 = 83000-14724 = 68276

c) Interest expense = 68276*6% = 4097

Principal = 19704-4097 = 15607

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