Multiple Choice
Use the following to answer questions
On January 1,2016 the Mahoney Company borrowed $324,000 cash from Sun Bank by issuing a five-year 8% term note.The principal and interest are repaid by making annual payments beginning on December 31,2016.The annual payment on the loan based on the present value of annuity factor would be $81,150.
-The amount of principal repayment included in the December 31,2016 payment is:
A) $25,920.
B) $81,150.
C) $74,658.
D) $55,230.
Correct Answer:
Verified
Correct Answer:
Verified
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