Question

obtains a $85,000, 6%, six-year loan for a new camp bus on January 1, 2020. If the monthly payment is $1,408.70 by how much will the carrying value decrease when the first payment is made on January 31, 2020

Answer 1

the carrying value is $983.70

Step-by-step explanation:

The computation of the carrying value is shown below:

= Monthly payment - interest

= $1,408.70 - ($85,000 × 6% × 1 month ÷ 12 month)

= $1,408.70 - $425

= $983.70

Hence, the carrying value is $983.70

We simply applied the above formula so that the correct value could come

And, the same is to be considered