On November 1,2012,EZ Products Borrowed $48,000 on a 5%,10-Year Note

question 150

Multiple Choice

On November 1,2012,EZ Products borrowed $48,000 on a 5%,10-year note with annual installment payments of $4,800 plus interest due on November 1 of each succeeding year.
-Which of the following describes the first installment payment made on November 1,2013?

• A) $4,800 principal plus $2,400 interest
• B) $4,800 principal plus $400 interest
• C) $2,400 principal plus $2,400 interest
• D) $2,000 interest only

---

Definitions:

Digital Currencies

Electronic money that exists in a digital form, enabling instant transactions and borderless transfer-of-ownership.

Valueless

Lacking in value, importance, or utility; having no worth or significance.

Constant Value

A value that remains unchanged over a period of time, despite external factors or conditions that might otherwise cause variation.

Cryptocurrencies

Cryptocurrencies are digital or virtual currencies that use cryptography for security and operate independently of a central authority, enabling secure, anonymous transactions.