-Everett Corporation Issues a 8%, 9-Year Mortgage Note on January

question 30

Multiple Choice

-Everett Corporation issues a 8%, 9-year mortgage note on January 1, 2009, to obtain financing for new equipment. Land is used as collateral for the note. The terms provide for semiannual installment payments of $131,600. The following values related to the time value of money were available to Everett to help them with their planning process and compounded interest decisions. To the closest dollar, what were the cash proceeds received from the issuance of the note?

• A) $822,091
• B) $947,520
• C) $1,665,964
• D) $1,643,363

---

Definitions:

Federal Reserve Notes

The official currency issued by the Federal Reserve System, constituting the primary form of paper money in the United States.

Federal Reserve System

The chief banking authority in the United States, tasked with the formulation of monetary policy and the oversight of banking institutions.

Deposit Insurance

Deposit insurance is a financial safeguard that protects depositors’ money in the event of a bank failure, guaranteeing a certain amount of an individual's deposits in member banks.

Commercial Banks

Financial institutions offering a range of services, including deposit accounts, loans, and credit.