On October 1, a $30,000, 6%, 3-Year Installment Note Payable

On October 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 at the end of each year on September 30. The present value of an annuity factor for 3 years at 6% is 2.6730. The payment will be:

A) $10,000.00.
B) $11,223.34.
C) $10,800.00.
D) $10,400.00.
E) $1,223.34.

Correct Answer:

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