First mortgage payment will be used to reduce the principal


On January 1, 2011, Climax Corporation signed a $10,000,000, 6%, 10-year mortgage note to finance the construction of its new hotel in Cancun. The note will be repaid in 10 equal annual installments of $1,358,679. The first payment was made on December 31, 2011. How much of the first mortgage payment will be used to reduce the principal? Round your answer to the nearest dollar.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: First mortgage payment will be used to reduce the principal
Reference No:- TGS0682947

Expected delivery within 24 Hours