A Company Borrowed $40,000 Cash from the Bank and Signed

Multiple Choice

A company borrowed $40,000 cash from the bank and signed a 6-year note at 7% annual interest. The present value of an annuity factor for 6 years at 7% is 4.7665.The present value of a single sum factor for 6 years at 7% is 0.6663. The annual annuity payments equal:

A) $8,391.90.
B) $40,000.00.
C) $60,033.02.
D) $190,660.00.
E) $26,652.00.