[The Following Information Applies to the Questions Displayed Below

question 102

Multiple Choice

[The following information applies to the questions displayed below.]

On January 1, Year 1, the Platte Corporation issues a 5-year note payable for $5,000. The interest rate is 5% and the annual payment of $1,156, due each December 31, includes both interest and principal.

-Which of the following shows the effect of the December 31,Year 1 payment?

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Offeree

The party to whom an offer is made in a transaction or agreement.

Offeror

The party in a contract negotiation who makes a proposal or offer to another party for entering into an agreement.

Offeree

The person to whom an offer is made, typically in the context of contracts, where the offeree can accept, reject, or counteroffer.

Present Intent

The current intention to perform an act or claim a legal right.