Thank you Prof. Farhat for your explanation. Could you explain in further details why we need to use face value of the note ($20k) in calculating the annual payment (4:39)?
Hello Sr. Thank so much for your explain, but I want to know, how you get the 3.992 and 3.890, I am a little confused because I don't Know how get that number?
Clear as crystal. I got this right but the way you explain the "why" gives me a foundational understanding. Thanks Professor!
You're very welcome! Here's my FAR CPA exam Resources; farhatlectures.pathwright.com/library/?category=CPA+Exam+FAR
Such a clear explanation of a tough problem. Thank you
Glad it helped! Here's all my FAR resources: farhatlectures.pathwright.com/library/?category=CPA+Exam+FAR
Amazing explanation. Thank you
Thank you. Please visit my website for more: www.farhatlectures.com
Thank you Prof. Farhat for your explanation. Could you explain in further details why we need to use face value of the note ($20k) in calculating the annual payment (4:39)?
The payment (cash) is always based on face value times the stated rate.
How do you know the FV of the annuities is 20000$
Hello Sr. Thank so much for your explain, but I want to know, how you get the 3.992 and 3.890, I am a little confused because I don't Know how get that number?
why using the total of 5010 payment to compute interest revenue instead of using 20000?