On November 1,2018,A-1 Products Borrowed $64,000 on a 5%,5-Year Note

question 156

Multiple Choice

On November 1,2018,A-1 Products borrowed $64,000 on a 5%,5-year note with annual installment payments of $12,800 plus interest due on November 1 of each succeeding year.On November 1,2020,what is the balance of the Long-Term Notes Payable account? (Round your answer to nearest whole number.)

• A) $38,400
• B) $64,000
• C) $51,200
• D) $12,800

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Definitions:

Investment

Assets or items acquired with the goal of generating income or appreciation in value over time.

Cash Flows

The total amount of money being transferred into and out of a business, considered essential for assessing the financial health of a business.

Project Ranking

The process of ordering projects by some criteria such as profitability, risk, or strategic value to prioritize investments and resource allocation.

Profitability Index

An instrument in finance that quantifies the potential profit of an investment by dividing the current value of anticipated cash flows by the initial cost of investment.