A Company Purchased Equipment and Signed a 7-Year Installment Loan

question 67

Multiple Choice

A company purchased equipment and signed a 7-year installment loan at 9% annual interest.The annual payments equal $9,000.The present value of an annuity factor for 7 years at 9% is 5.0330.The present value of a single sum factor for 7 years at 9% is 0.5470.The present value of the loan is:

• A)$9,000.
• B)$4,923.
• C)$16,453.
• D)$63,000.
• E)$45,297.

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Definitions:

Assignment

A transfer of property or some right or interest.

Motion To Dismiss

The tenancy that exists when the landlordand tenant agree that rent will be paid in regular successive intervals until notice to terminate is given but do not agree on a

Demurrer

A civil motion that attacks the plaintiff’s complaint by assuming the truth of the facts stated in the complaint for purposes of the motion, and by arguing that even if these facts are true, there is no rule of law entitling the plaintiff to recovery. Roughly similar to the motion to dismiss for failure to state a claim on which relief can be granted.

Interrogatory

A written question that one party in a lawsuit sends to another party as part of the discovery process, which must be answered in writing and under oath.