Alana Rodriguez Borrowed $13,000 at 9% Ordinary Interest for 140

question 87

Short Answer

Alana Rodriguez borrowed $13,000 at 9% ordinary interest for 140 days. After 60 days, she made a partial payment of $3,000. What is the final amount due on Alana's loan?

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Definitions:

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

Bank Reconciliation

The process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement.

Non-current Liability

A Non-current Liability is a financial obligation that a company does not expect to settle within the next twelve months from the reporting date.

Credit Balance

A situation where the total credits in an account exceed the total debits; it's common in liability, revenue, and equity accounts.