Collins Company Borrowed $750,000 from BankTwo on January 1, 2013

Multiple Choice

Collins Company borrowed $750,000 from BankTwo on January 1, 2013 in order to expand its mining capabilities. The five-year note required annual payments of $195,327 and carried an annual interest rate of 9.5%. What is the balance in the notes payable account at December 31, 2014?

A) $750,000
B) $490,059
C) $625,923
D) $607,500