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Question 1 of 13 Question 1 10 points Reliable Industries purchased a supply of electronic components from Tomorrow Corporation on October 31, 2021. In payment for the $900,000 million purchase, Reliable issued a 1-year installment note to be paid in equal monthly payments of 79,964 at the end of each month. The payments include interest at the rate of 12%. What is the balance of notes payable on December 31, 2021 balance sheet? Save Answer (Do not add dollar sign; do not add comma by yourself to your amount; round the answer to the whole number)

Answer 1

Number of monthly payments done in 2021	2	months
Balance number of payments left on December 31, 2021 = 12 - Number of monthly payments done in 2021 = 12 - 2 =	10	months
n = 10
r = 12%/12	1%
Balance notes payable on December 31,2021 = Monthly payment * (1-(1+r)^-n)/r = 79964 * (1-(1+1%)^-10)/1% =	757363