Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
CHAPTER 15
Cookie Creations
(Note: This is a continuation of the Cookie Creations from Chapters 1 through 14.)
CC15 Natalie and Curtis have been experiencing great demand for their cookies and
muffins. As a result, they are now thinking about buying a commercial oven. They know
which oven they want and that it will cost $17,000. The company already has $5,000 set
aside for the purchase and will need to borrow the rest.
Natalie and Curtis met with a bank manager to discuss their options. She is willing to
lend Cookie & Coffee Creations Inc. $12,000 on November 1, 2017, for a period of 3
years at a 5% interest rate. The terms provide for fixed principal payments of $2,000, on
May 1 and November 1 of each year plus 6 months of interest.
Instructions
(a) Prepare a payment schedule for the life of the note.
