Note with unreasonable terms (funny money) E Company purchased a truck for an agreed price of $1...

Repayment schedule
Period	Amount Outstanding	interest @1/8%	amount paid	closing balance
1	135,000	-	30,000	105,000
2	105,000	131	8,881	96,250
3	96,250	120	8,870	87,500
4	87,500	109	8,859	78,750
5	78,750	98	8,848	70,000
6	70,000	88	8,838	61,250
7	61,250	77	8,827	52,500
8	52,500	66	8,816	43,750
9	43,750	55	8,805	35,000
10	35,000	44	8,794	26,250
11	26,250	33	8,783	17,500
12	17,500	22	8,772	8,750
13	8,750	11	8,761	-
Effective interest rate with cash price
Period	Amount Outstanding	interest @1.71%	amount paid	closing balance
1	125,000	-	30,000	95,000
2	95,000	1,625	8,881	87,743
3	87,743	1,500	8,870	80,373
4	80,373	1,374	8,859	72,888
5	72,888	1,246	8,848	65,286
6	65,286	1,116	8,838	57,565
7	57,565	984	8,827	49,723
8	49,723	850	8,816	41,758
9	41,758	714	8,805	33,667
10	33,667	576	8,794	25,449
11	25,449	435	8,783	17,101
12	17,101	292	8,772	8,622
13	8,622	147	8,761	8
	Effective interest rate	6.84
31-03-18	Interest on loan	98
	Loan a/c	8750
	bank		8848
31-03-18	Loan a/c	70000
	bank		70000