Mann Co Is Preparing an Excel Spreadsheet for Its 5-Year, 6

question 124

Multiple Choice

Mann Co. is preparing an Excel spreadsheet for its 5-year, 6%, $400,000 installment notes. The notes were issued on January 1 for $421,236. Installment payments are payable each December 31. A portion of the spreadsheet appears as follows: What formula should Mann use in cell E8 to calculate the book value of the notes after the second interest payment?

• A) =E7 - D8
• B) =E7 + D8
• C) =E8 + D8
• D) =PV(C2,C3,0,C1,type)

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