On 1 March 2017,Vinnie Services Issued a 5% Long-Term Note

question 56

Multiple Choice

On 1 March 2017,Vinnie Services issued a 5% long-term note payable for $18,000.It is payable over a 3-year term in $6000 principal instalments on 1 March of each year,beginning 1 March 2018.Each yearly instalment will include both principal repayment of $6000 and interest payment for the preceding one-year period.What is the amount of total cash payment that the Vinnie will make on 1 March 2018?

• A)$6900
• B)$6450
• C)$6000
• D)$18,000

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Definitions:

Cellulose

A complex carbohydrate that is the primary component of plant cell walls, providing structural support.

Euglenoids

A diverse group of unicellular protists characterized by their ability to move via flagella and photosynthesize like plants.

Pseudopodia

Pseudopodia are temporary, amoeba-like projections of the cell membrane used by some cells for movement and feeding.

Cilia

Short, hairlike projections from the plasma membrane, occurring usually in larger numbers.