Camp elim obtains a $125,000, 6%, fiveyear loan for a new camp bus on january 1, 2018. what amount will be recorded for interest expense for the first payment
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Question
Camp elim obtains a $125,000, 6%, fiveyear 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?
2 Answer

1. User Answers andriansp
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. 
2. User Answers PiaDeveau
Answer:
$625
Explanation:
camp elin have to pay $625 for the period.
[tex]simple interest = \frac{PRT}{100}[/tex]
[tex]simple interest = \frac{125000*6*1}{100*12}[/tex] = 625
simple interest : Easy interest is a fast and easy way to calculate interest charges on a loan. Simple interest is measured by the calculation of the principal's annual interest rate by the number of days among transactions that pass.