Installment Notes Payable [Professor Barbara Gonzalez]
8:00
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Installment Notes Payable [Professor Barbara Gonzalez]
Explanation and example of installment notes payable. Click here to view the notes that accompany this video: https://drive.google.com/file/d/17Y1jyi7yvu2wp7N7PGGow3nc3YllgPbP/view?usp=sharing
4.9K viewsMar 5, 2021
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#Installment Note Explained
On August 1, a 30,000, 6%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest be paid each year on July 31. The present value of an annuity factor for 3 years at 6% is 2.6730. The present value of a single sum factor for 3 years at 6% is 0.8396. The payment each July 31 will be:
On August 1, a 30,000, 6%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest be paid each year on July 31. The present value of an annuity factor for 3 years at 6% is 2.6730. The present value of a single sum factor for 3 years at 6% is 0.8396. The payment each July 31 will be:
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