On March 1, 2015, Vinnie Services Issued a 5% Long-Term

On March 1, 2015, Vinnie Services issued a 5% long-term notes payable for $15,000. It is payable over a 3-year term in $5,000 principal installments on March 1 of each year, beginning March 1, 2016. Each yearly installment will include both principal repayment of $5,000 and interest payment for the preceding one-year period. What is the amount of total cash payment that the Vinnie will make on March 1, 2016?

A) $5,000
B) $5,750
C) $15,000
D) $5,375

Correct Answer:

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