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Paris Company Buys a Building on a Plot of Land

Question 38

Multiple Choice

Paris Company buys a building on a plot of land for $100,000,paying $20,000 cash and signing a 20-year mortgage note for $80,000 at 6%.Monthly payments are $570.
-What portion of the first monthly payment is interest expense?


A) $4,800
B) $570
C) $550
D) $400

Correct Answer:

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