Camp elim obtains a $125,000, 6%, five-year loan for a new camp bus on january 1, 2018. what amount will be recorded for interest expense for the first payment on january 31, 2018?

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Business

Deacon Moss

3 May, 15:50

Camp elim obtains a $125,000, 6%, five-year loan for a new camp bus on january 1, 2018. what amount will be recorded for interest expense for the first payment on january 31, 2018?

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Aria · Answer 1

The amount that will be recorded for interest expense for the first payment on January 31, 2018 is $625. Interest expense is type of return which paid by the debtor in this case, Camp Elim for its $125,000 loan for the bus. To get the amount you must calculate 6% of the loan principal and then divided by 12, which is the total month of a year.