Find how much will be the annual payment on the new note

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Reference no: EM132648488

Beta bought a computer at a cost of $ 45,000. To finance the purchase, she signed a promissory note that requires six equal annual payments. Beta will make the first payment in a year. Each payment will be in the amount of $ 10,637.

Question a. Determine the interest rate on this note.

Question b. Prepare the wage entries Beta will do for the first payment and for the last payment.

Question c. Suppose that immediately after making the third payment, Beta refinances and signs a new three-year note for the amount owed on the first note and the interest rate is 7.5%, how much will be the annual payment on the new note.

Reference no: EM132648488

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