On December 1, Year 1, Bradley Corporation incurs a 15-year $200,000 mortgage liability in conjunction with the acquisition of an office building. This mortgage is payable in monthly installments of $2,400, which include interest computed at the rate of 12% per year. The first monthly payment is made on December 31, Year 1.

How much of the first payment made on December 31, Year 1, represents interest expense?
a 2400
b 400
c 2304
d 2000

Answers

Answer 1

Answer:

d 2000

Explanation:

The computation of the interest payment made is shown below:

Interest expense  is

= Mortgage liability × rate of interest × given months ÷ total months

= ($200,000 × 12%) × 1 ÷ 12

= $24,000 × 1 ÷ 12

= $2,000

Hence, the correct option is d.


Related Questions

Other Questions
Find the value of 12 + 8 (9). Question 20 options: 13 5 13 5 3. Write an equation for the exponential function represented in the table and graphbelow. Help please X-21.5-13061122.24 Which of the following types of figurative language is used in Diary of a Young Girl when Anne says that being alone outside with God is the best remedy?similemetaphorallusionhyperbole Use the Distributive Property to solve the problem. [Example: 4(6+3) = 4(6)+4(3) = 24 + 12 = 36] 9(8 + 4)(sorry for spamming these questions, its part of an assignment i HAVE to do well on to raise my horrible math grade) Help me please thank you 2. An object's weight is proportional to its _ or _ from another object Junie is researching Ancient Egypt. She found a website that is full of information and greatimages. As she is reading the text, she notices that there are little bits of information that don'treally agree with any of the other research she has done. What should she do?O Use the website. Most of the information seems correct.OUse only the information that she needs and ignore the information that doesn't seem right.O Ask her friend what he thinks about the website.O Evaluate the site using the CARS checklist to see if the site is valid and reliable. What are your strengths?(job related) A student solved the equation 2x+6=12 using algebra tiles. incorrectly says the solution is 9. Solve the equation. What mistake might the student have made? btw giving brainliest! Need answers right away due tonight please. Geometry composite shapes. The most serious effect of the poor sanitation and contaminated water supplies in tenements was Write an equation that you can use to solve for x.Enter your answer in the box. How will the phrase Courage to care, motivate you in your future? Did France and Britain compromise their democratic ideals by agreeing to the Munich Pact? What shape is this galaxy?? Solve for c, giving brainliest. please show your work/explain, i got to the point of square rooting 185, but i don't understand where to go from there if it cannot be simplified. Thanks. PLEASE HELP ME ASAP I'LL GIVE BRAINLIEST can someone help me with these French questions CAN SOMEONE PLEASE HELP ME WITH THIS ITS DUE TODAY Read the passage, then answer the question that follows.As ever, sugar work was brutally hard. The workers woke early, and for the first few months they were seasonedlearning the numbing work of hoeing or weeding or loading the barges with cut cane. After they were broken in, they might take on other tasks or, if they were lucky, get a place at the factory. The Indians contracts called for seven hours work for about twenty-four cents a day. During the first few months, though, eight cents a week was deducted for food rations. And no matter what the words said on a piece of paper, sugar workers did not work just seven hours. More often than not, they labored as long as there was light, in the broiling heat. And though they might not be shackled or whipped like slaves, their lives were completely controlled by the terrifying overseers. Sugar Changed the World, Marc Aronson and Marina BudhosWhich quotation best gives empirical evidence supporting the central idea that the Indians working conditions were similar to slavery?If they were lucky, [they might] get a place at the factory.The Indians contracts called for seven hours work for about twenty-four cents a day.During the first few months . . . eight cents a week was deducted for food rations.Their lives were completely controlled by the terrifying overseers.