On March 1,2018,Mandy Services Issued a 3% Long-Term Notes Payable

question 179

Multiple Choice

On March 1,2018,Mandy Services issued a 3% long-term notes payable for $15,000.It is payable over a 3-year term in $5000 principal installments on March 1 of each year,beginning March 1,2019.Each yearly installment will include both principal repayment of $5000 and interest payment for the preceding one-year period.What is the amount of total cash payment that Mandy will make on March 1,2019?

• A) $5000
• B) $5450
• C) $15,000
• D) $5225

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Definitions:

Standardization

The process of developing and implementing technical standards to ensure the compatibility, safety, and quality of products or services.

Insurance Policies

Contracts between an insurer and a policyholder that stipulate the terms under which the insurer agrees to compensate the policyholder for loss related to specific events or hazards.

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