Nominal rate yung 10% (as ease,

imumultiply sa principal amount)

Effective rate yung 12%

It matures in five years (meaning dun

palang babayaran)

Req #1

 If the carrying amount is less than principal amount (discount sya)

 If the carrying amount is greater than principal amount (premium sya)

Req #2

Carrying amount x 10% yung interest received

Carrying amount x 12% yung interest income

Yung amortization = interest received – interest income

Tas yung susunud na carrying amount, add the amortization and the current carrying amount (p.s sunod
sunod nalang yan)
Kailangan 4,000,000 yung end, so ang gagawin sa huling yr, minus the 4M to last carrying amount =
71,614.10 ang matitira interest income, simply add interest received to amortization = 471,614.10

Req #3

12/31/2023