Multiple Choice
Alden Trucking Company is replacing part of its fleet of trucks by purchasing them under a note agreement with Kenworthy on January 1,2019.Alden financed $37,908,000,and the note agreement will require $10 million in annual payments starting on December 31,2019 and continuing for a total of four more years (final payment December 31,2023) .Kenworthy will charge Alden Trucking Company the market interest rate of 10% compounded annually.
- After the first payment was made,the note payable liability on December 31,2019 is closest to:
A) $32,908,000.
B) $31,698,800.
C) $40,000,000.
D) $27,908,000.
Correct Answer:
Verified
Correct Answer:
Verified
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