Mewto Bank granted a loan to Mew Company on January 1, 2020. The interest on the loan is 12% payable annually starting December 31, 2020. The loan matures in four years. Principal amount P5,000,000 Direct origination cost incurred 120,000 Indirect origination cost incurred 50,000 Origination fee received from the borrower 400,000 After considering the origination fee received from the borrower and the direct origination cost incurred, the effective rate on the loan is 14%.How much is the interest income to be recognized on December 31, 2021?

Mewto Bank granted a loan to Mew Company on January 1, 2020. The interest on the loan is 12% payable annually starting December 31, 2020. The loan matures in four years. Principal amount P5,000,000...

Mewto Bank granted a loan to Mew Company on January 1, 2020. The interest on the loan is 12% payable annually starting December 31, 2020. The loan matures in four years.

Principal amount	P5,000,000
Direct origination cost incurred	120,000
Indirect origination cost incurred	50,000
Origination fee received from the borrower	400,000

After considering the origination fee received from the borrower and the direct origination cost incurred, the effective rate on the loan is 14%.

How much is the interest income to be recognized on December 31, 2021?

Jun 08, 2022

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Mewto Bank granted a loan to Mew Company on January 1, 2020. The interest on the loan is 12% payable annually starting December 31, 2020. The loan matures in four years. Principal amount P5,000,000...

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