Repayment of the principle
Your company has taken out a 1year installment loan for 725000 at a nominal rate of 11% but with equal end of month payments. What percentage of the 2nd monthly payment will go toward the repayment of the principle?
73.67
77.55
81.63
85.93
90.45
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Company 1 capitalizes the lease, whereas company 2 records the lease as an operating lease. Both firms depreciate assets by the straight-line method, and both treat the lease as an operating lease for federal income tax purposes.
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