On August 1, a $30,000, 6%, 3-Year Installment Note Payable

question 170

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

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Definitions:

Resource Inputs

The materials, labor, information, and other assets used to produce goods or services in a system or process.

Contingency Thinking

An approach that emphasizes the need to tailor decisions and actions to the specifics of a situation rather than relying on one-size-fits-all solutions.

Management Styles

The various approaches and methods employed by leaders in guiding, directing, and motivating employees to achieve organizational objectives.

Knowledge Management

The efficient handling, organizing, and sharing of information and knowledge within an organization.