On July 1, Shady Creek Resort borrowed $250,000 cash by signing a 10-year, 8% installment note requiring equal payments each June 30 of $37,258. What amount of principal will be included in the first annual payment

Principal payable in year 1 = $17,258

Explanation:

Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest.

The annual installment is computed as follows:  

Annual installment= Loan amount/annuity factor .

The annual installment is already given as 37,258.

Principal payable = Annual installment - interest amount

Interest amount = Interest rate × loan amount

                         = 8%× 250,000 =20,000

Principal payable in year 1 =37,258 - 20,000  =$17,258

Principal payable in year 1 = $17,258

match each type of restriction with one of its effects.

a. land-use laws

b. labor laws

c. banking regulations

a. controlled development of towns and cities

b. protection of young workers

c. greater financial stability

answer; planning;