Miller Borrows $300,000 to Be Paid Off in Three Years

question 63

Multiple Choice

Miller borrows $300,000 to be paid off in three years.The loan payments are semiannual with the first payment due in six months,and interest is at 6%.What is the amount of each payment?

• A)$55,379.
• B)$106,059.
• C)$30,138.
• D)$60,276.

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Definitions:

Discontinued Operations

Components of a business that have been disposed of or are classified as held for sale, and will not be continuing operations in the future.

Future Cash Flows

Estimated future financial earnings or expenses, which are used in various financial analyses to determine investment potential or project value.

Income Items

Generally refer to all the items that contribute to a company's net income, including revenue from sales, services, and other sources.

Reportable Segment

A component of a business that can be separately distinguished for financial reporting purposes, typically based on product line or geographic area.