A Company Borrows $40,000 and Issues a 3-Year,10% Installment Note

question 193

True/False

A company borrows $40,000 and issues a 3-year,10% installment note with interest payable annually.The factor for the present value of an annuity at 10% for 3 years is 2.4869.The factor for the present value of a single sum at 10% for 3 years is 0.7513.The amount of the annual interest payment is $16,084.28.

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Definitions:

Nonreligious

Pertaining to individuals or philosophies that do not subscribe to any religious beliefs or practices.

Situational Adjustment

The process by which an individual is molded by the group into which he or she is seeking acceptance. The person learns from the group how to continue successfully in a situation.

Sociologist

A social scientist who studies human societies, their interactions, and the processes that preserve and change them.

Kubler-Ross's Stages

A model describing five stages of emotional response to grief and loss, including denial, anger, bargaining, depression, and acceptance.