Trek Company Signed a 9%, 10-Year Note for $150,000

question 33

Multiple Choice

Trek Company signed a 9%, 10-year note for $150,000. The company paid $1,900 as the installment for the first month. What portion of the first monthly payment is principal?

• A)$775
• B)$2,375
• C)$1,800
• D)$14,400

---

Definitions:

Marketers

Professionals or organizations involved in the activities and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Activity Ratio

A financial metric used to measure a company's ability to convert different accounts within its balance sheets into cash or sales.

Financial Ratio

A quantitative measure derived from a company's financial statements used to gauge its performance, financial health, and conditions.

Progress Control

A management technique that involves the monitoring and evaluating of the progress of a project or plan to ensure it meets its objectives within the designated time frame.