On August 1, a $30,000, 6%, 3-Year Installment Note Payable

Multiple Choice

On August 1, a $30,000, 6%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest each year on July 31. The present value of an annuity factor for 3 years at 6% is 2.6730. The payment each July 31 will be:

A) $10,000.00.
B) $11,223.34.
C) $10,800.00.
D) $10,400.00.
E) $1,223.34.