Multiple Choice
On August 1,a $30,000,6%,3-year installment note payable is issued by a company.The note requires equal payments of principal plus accrued interest be paid each year on July 31.The present value of an annuity factor for 3 years at 6% is 2.6730.The payment each July 31 will be:
A) $10,000.00.
B) $11,223.34.
C) $10,800.00.
D) $10,400.00.
E) $1,223.34.
Correct Answer:
Verified
Correct Answer:
Verified
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