On December 30, 2012, AGH, Inc

question 26

Multiple Choice

On December 30, 2012, AGH, Inc.purchased a machine from Grant Corp.in exchange for a zero-interest-bearing note requiring eight payments of $50,000.The first payment was made on December 30, 2012, and the others are due annually on December 30.At date of issuance, the prevailing rate of interest for this type of note was 11%.Present value factors are as follows: On AGH's December 31, 2012 balance sheet, the net note payable to Grant is

• A)$235,600.
• B)$257,300.
• C)$261,775.
• D)$285,600.

---

Definitions:

Budget Line

A visual representation showing every possible mix of two products that a consumer is able to purchase with their income, taking into account the cost of these items.

Utility Function

A mathematical representation used in economics to model preferences and satisfaction obtained from consuming goods and services.

Berries

Small, pulpy, and often edible fruits, typically round, brightly colored, sweet or sour, and do not have a stone or pit, although many seeds may be present.

Nuts

Edible seeds of certain plants, enclosed in a hard shell, and often consumed as a nutrient-rich food.