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

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Definitions:

Painting

The practice of applying pigment, color, or other medium to a surface with various tools, creating artistic expressions.

Automatism

In painting, the process of yielding oneself to instinctive motions of the hands after establishing a set of conditions (such as size of paper or medium) within which a work is to be created.

Paranoic-critical

A method developed by Salvador Dalí meant to access the subconscious and enhance artistic creativity through a systematic irrational thought process.

Abstract Sculpture

A form of sculpture that emphasizes shapes, colors, and textures over realistic representation, focusing on the inherent beauty of the materials used.