prepaid insurance/amortization Quest.
Any help would be appreciated, and thank you in advance.
Coverage period is 11/12/2009 - 11/12/2010
Total cost= $43,098.33 (Quarterly $10,774.58 or Monthly $3,591.53)
on 11/12/2009 the beginning balance was 14,222.46.............ending balance $14,222.46
on 12/31/2009 the amortization is $8,021.10........................ending balance $6,201.36
Ok so my question is how is this $8,021.10 calculated as being amortized on 12/31/09. Because when I calculate it out it comes to $5,835.05?
Here is how I'm calculating it:
($43,098.33/365 days = $118.08 per day, therefore 19 days remainning in November = 19* 118.08 = $2,243.52)
2,243.52 November + $3,591.53 December = $5,835.05
Please help what am I doing incorrect? I know it's probably a simple math error I'm doing wrong somewhere. Thanks for your help in explaining.