[The Following Information Applies to the Questions Displayed Below

question 59

Multiple Choice

[The following information applies to the questions displayed below.]

On January 1, Year 1, Mahoney Company borrowed $324,000 cash from Sun Bank by issuing a 5-year, 8% term note. The principal and interest are repaid by making annual payments beginning on December 31, Year 1. The annual payment on the loan equals $81,150.


-What is the amount of principal repayment included in the payment made on December 31,Year 1?

• A)$25,920
• B)$81,150
• C)$74,658
• D)$55,230

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