A $30,000, 8%, 10-Year Note Payable That Pays Interest Quarterly

Multiple Choice

A $30,000, 8%, 10-year note payable that pays interest quarterly would be discounted back to its present value by using tables that would indicate which one of the following period-interest combinations?

A) 10 interest periods, 8% interest
B) 40 interest periods, 8% interest
C) 40 interest periods, 2% interest
D) 10 interest periods, 2% interest