Use the Following to Answer Questions

question 151

Multiple Choice

Use the following to answer questions
On January 1,2016 the Mahoney Company borrowed $324,000 cash from Sun Bank by issuing a five-year 8% term note.The principal and interest are repaid by making annual payments beginning on December 31,2016.The annual payment on the loan based on the present value of annuity factor would be $81,150.
-The amount of principal repayment included in the December 31,2016 payment is:

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

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Definitions:

IQ Test

A standardized test designed to measure human intelligence and cognitive abilities in relation to an age group, often used for educational placement, assessment of intellectual disability, and job applicant evaluation.

Creative Intelligence

An aspect of intelligence that involves the ability to deal with new situations using past experiences and current skills.

Practical Intelligence

The aspect of intelligence that involves the ability to solve everyday problems through skilled reasoning that relies on tacit knowledge.

Everyday Intelligence

Practical intelligence that relates to daily life skills and the ability to adapt to everyday challenges.