Row,IncNeeded Some Long-Term Financing and Arranged for a 10-Year,$100,000,7% Mortgage

question 155

Multiple Choice

Row,Inc.needed some long-term financing and arranged for a 10-year,$100,000,7% mortgage loan on January 1,2010.Annual payments of $14,238 will be made on December 31 each year.After the first payment,Mortgage payable will have a balance of ________.

• A)$100,000
• B)$85,762
• C)$92,762
• D)$93,000

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Definitions:

Accepted

Acknowledged or agreed upon; an offer or proposal that has been received and approved.

Reasonable Amount

A quantity or level of something (such as time, cost, or size) that is considered fair, proper, and appropriate under typical circumstances.

Express Terms

Specific provisions or conditions explicitly stated in a contract or agreement.

Past Course

A historical pattern of behavior or performance that may be considered in evaluating the current situation or deciding on future actions.