Briefly Explain How You Would Arrive at the Monthly Payment

question 98

Essay

Briefly explain how you would arrive at the monthly payment for a 48-month loan where the first payment is due one month from the loan date. In your explanation, include the use of present or future value tables.

---

Definitions:

Credits

Entries that increase liabilities or equity accounts, or decrease asset or expense accounts in accounting.

Wages Payable

An account that records the amounts owed to employees for work that has been performed but has not yet been paid.

Wages Expense

The total cost incurred by a company for paying hourly-based employee salaries.

Adalat

A brand name for Nifedipine, a medication used to treat high blood pressure and chest pain associated with angina.