On August 1,a $30,000,6%,3-Year Installment Note Payable Is Issued by a Company.The

question 124

Multiple Choice

On August 1,a $30,000,6%,3-year installment note payable is issued by a company.The note requires equal payments of principal plus accrued interest be paid each year on July 31.The present value of an annuity factor for 3 years at 6% is 2.6730.The present value of a single sum factor for 3 years at 6% is 0.8396.The payment each July 31 will be:

• A)$10,000.00.
• B)$11,223.34.
• C)$80,190,00.
• D)$10,400.00.
• E)$1,223.34.