Answer:
The balance of the Long-Term Notes Payable account on November 1, 2020, is $44,320
Explanation:
The loan will be paid together with interest using the computation below;
2018
November 1, 2018 borrowed $ 64,000
Add Interest payable in 2018 (5% X 64,000) $3,200
less 1st instalment payment -$12,800
Balance in November 1, 2019 $54,400
Add Interest payable in 2019 (5% X 54,400) $2,720
less 1st instalment payment -$12,800
Balance in November 1, 2020 $44,320
to be sure of our computation we continue to the end of loan payment
Balance in November 1, 2020 $44,320
Add Interest payable in 2019 (5% X $44,320) $2,216
less 1st instalment payment -$12,800
Balance in November 1, 2021 $33,736
Add Interest payable in 2019 (5% X $33,736) $1,686.8
less 1st instalment payment -$12,800
Balance in November 1, 2022 $22,622.8
Add Interest payable in 2019 (5% X $22,622.8) $1,131.14
less 1st instalment payment -$12,800
Balance in November 1, 2023 $10,953.94
Add Interest payable in 2019 (5% X $10,953.94) $547.69
less 1st instalment payment -$11,501.63
Balance in November 1, 2024 $0
note that the last year instalment is not up to $12,800 because the interest rate of 5% is not the correct IRR
