On November 1, 2015, Norwood borrows $440,000 cash from a bank by signing a five

Question

On November 1, 2015, Norwood borrows $440,000 cash from a bank by signing a five-year installment note bearing 7% interest. The note requires equal total payments each year on October 31. (Table B.1. Table B.2. Table B.3. and Table B.41 (Use appropriate factor(s) from the tables provided.) Complete the below table to calculate the total amount of each installment payment. Complete an amortization table for this installment note. (Round your intermediate calculations to the nearest dollar amount.)

Explanation / Answer

1. Amount of Annual Payment=$440,000/4.1=$107,317

2.

Period Ending Beginning Balance Debit Interest Debit Notes Payable Installment Paid Closing Balance 31-10-2016        4,40,000        30,800            76,517        1,07,317        3,63,483 31-10-2017        3,63,483        25,444            81,873        1,07,317        2,81,610 31-10-2018        2,81,610        19,713            87,604        1,07,317        1,94,005 31-10-2019        1,94,005        13,580            93,737        1,07,317        1,00,269 31-10-2020        1,00,269           7,019         1,00,269        1,07,317                     -0                     -          96,556         4,40,000        5,36,585                     -  

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