[The Following Information Applies to the Questions Displayed Below

question 62

Multiple Choice

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

On January 1, Year 1, Echols Company borrowed $100,000 cash from Sun Bank by issuing a 5-year, 8% term note. The principal and interest are repaid by making annual payments beginning on December 31, Year 1. The annual payment on the loan equals $25,045.65.

-What is the amount of principal repayment included in the payment made on December 31,Year 1?

• A)$20,000.00
• B)$8,000.00
• C)$25,045.65
• D)$17,045.65

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Definitions:

Treatments

A specific procedure or regimen administered to participants in a scientific study to assess its efficacy or impact.

Randomized Block Design

A statistical experimental design that groups subjects into blocks to account for variability among them and randomly assigns treatments within each block.

Sum of Squares

A measure used in statistics that quantifies the variation or dispersion of a set of data points.

Two-way ANOVA

A statistical test used to determine the effect of two nominal predictor variables on a continuous outcome, assessing interaction between the two factors.