Multiple Choice
Alden Trucking Company is replacing part of their fleet of trucks by purchasing them under a note agreement with Kenworthy on January 1,2010.Alden financed $37,908,000,the note agreement will require $10 million in annual payments starting on December 31,2010 and continuing for a total of five years (final payment December 31,2014) .Kenworthy will charge Alden Trucking Company the market interest rate of 10% compounded annually.What is the note and interest payable liability on December 31,2010 after the first payment was made?
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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