Question

Allstar Company signed a $200,000 mortgage on July 1, 2018 for the purchase of their new garage building. The mortgage entailed equal monthly payments of $2,900 at the end of each month. The interest rate is 8.0% per year. How much interest expense will be paid on August 31, 2018? (Round your answer to the nearest whole dollar.)

Answer 1

nterest expenses or Anterest expenses refers to those expenses which are ancurred against the marea borrowed. It is specific percent of porincipal amount which is paid to lender en periodic intervals or id considered as nou operating expense criven information on july 1, 2018 – Allstcor company signed a $2.00000 mostgage for the purchase of their new garage building. an mostgage monthly payment - $2,900 at the end of each marth. antoreit orate in 8%. Per yeas explanation : Answos and porêncepal Coul-standing principal repaid interact payment expense Darte $2.00000 1 ojuly 2018 $1.98,433 $2900 $ 1,567 31 july 2018 $1,333 (*) 62900x1333) $196,856 $2,900 $1577 (2900-1323) 31 Aug $1,323 2018

31 et july Interest expense = principal X Ratex Number of me antly = $200,000 x 8%x 1 12 = $1,333 ** For 31 Aug mtorect expene = No. of months principal x Ratex - = 1,98433 x 82.X 12 = $ 1,323