Buffon Electronics Company Issues a $1,500,000, 10%, 20-Year Mortgage Note

question 183

Multiple Choice

Buffon Electronics Company issues a $1,500,000, 10%, 20-year mortgage note on January 1. The terms provide for semiannual installment payments, exclusive of real estate taxes and insurance, of $87,414. After the first installment payment, the principal balance is

• A) $1,500,000.
• B) $1,474,551.
• C) $1,487,586.
• D) $1,168,688.

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Definitions:

Not Aware

The condition of being uninformed or lacking knowledge about a specific subject or situation.

Impression Management

The process by which individuals attempt to control the perceptions others have of them, through the manipulation of verbal and non-verbal cues.

Intimidation

The act of making others feel fearful or inhibited through aggressive behavior or threats.

Consensus

A general agreement or collective harmony of opinions, feelings, or positions among members of a group.