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- Jan 26, 2012

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I'm needing help w/ an accounting issue that deals with applying interest annually. The interest rate is 10%. It doesn't say if it's compounded or simple so which is to be used?

If you start with a balance of \$20323.64 in Jan, and make twelve monthly payments of \$200 each (total \$2400) how much $ in interest is charged, when is it applied (Jan, monthly, or Dec etc?) and what's the ending balance for the year?

Please help me out, and explain your answer so that I'll know how to do it next time ok? Thanks!!

If you start with a balance of \$20323.64 in Jan, and make twelve monthly payments of \$200 each (total \$2400) how much $ in interest is charged, when is it applied (Jan, monthly, or Dec etc?) and what's the ending balance for the year?

Please help me out, and explain your answer so that I'll know how to do it next time ok? Thanks!!

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