Titanic Corporation Leased Executive Limos Under Terms of $20,000 Down

question 51

Multiple Choice

Titanic Corporation leased executive limos under terms of $20,000 down and four equal annual payments of $30,000 on the anniversary date of the lease. The interest rate implicit in the lease is 11%. The first year's interest expense would be:

• A)$13,200.
• B)$10,238.
• C)$33,200.
• D)$15,543.PVA = $30,000 x 3.10245* = $93,074 $93,074 x 11% = $10,238
• *PVA of $1: n=4; i=11%

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Definitions:

Months

Units of time, typically used in calendars, that roughly correspond to the period of time it takes for the Moon to orbit the Earth, usually divided into twelve periods in a year.

Chemistry Experiments

Practical scientific procedures carried out to investigate chemical reactions and properties.

Cognitive Development

The process of growth and change in intellectual/mental abilities such as thinking, reasoning, and understanding across the lifespan.

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A suggested theory derived from minimal evidence intended as an initial step for more in-depth inquiry.