A Company Borrows $40,000 and Issues a 3-Year, 10% Installment

question 157

True/False

A company borrows $40,000 and issues a 3-year, 10% installment note with interest payable annually. The factor for the present value of an annuity at 10% for 3 years is 2.4869. The factor for the present value of a single sum at 10% for 3 years is 0.7513. The amount of the annual payment is $12,000.

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Definitions:

Hemopoiesis

The production of all types of blood cells in the bone marrow, including red blood cells, white blood cells, and platelets.

Muscular System

The biological system that comprises of all the muscles in the body and enables movement, both voluntary and involuntary, as well as posture maintenance.

Amputation

The surgical removal of all or part of a limb or extremity such as an arm, leg, foot, hand, toe, or finger.

Excision

The process of cutting out or surgical removal of a piece of tissue, an organ, or a foreign object from the body.