An Installment Note Payable for a Principal Amount of $48,000

Multiple Choice

An installment note payable for a principal amount of $48,000 at 6% interest requires Lawson Company to repay the principal and interest in equal annual payments of $11,395 beginning December 31, 2011, for each of the next five years. After the final payment, the carrying amount on the note will be

A) $5,425
B) $8,975
C) $11,395
D) $0