A $10,000, 6%, 5-Year Note Payable That Pays Interest Quarterly

Multiple Choice

A $10,000, 6%, 5-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) 5 interest periods, 6% interest
B) 20 interest periods, 6% interest
C) 20 interest periods, 1.5% interest
D) 5 interest periods, 1.5% interest