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On January 1, Year 1, the Mahoney Company borrowed $177,000 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, Year 1. The annual payment on the loan based on the present value of annuity factor would be $44,331. The amount of principal repayment included in the December 31, Year 1 payment is: Multiple Choice $14,160 $44,331 $30,171 $37,674

On January 1, Year 1, the Mahoney Company borrowed $177,000 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, Year 1. The annual payment on the loan based on the present value of annuity factor would be $44,331. The amount of principal repayment included in the December 31, Year 1 payment is: Multiple Choice $14,160 $44,331 $30,171 $37,674

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, Year 1, the Mahoney Company borrowed $177,000 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, Year 1. The annual payment on the loan based on the present value of annuity factor would be $44,331. The amount of principal repayment included in the December 31, Year 1 payment is: Multiple Choice $14,160 $44,331 $30,171 $37,674
Transcribed Image Text:On January 1, Year 1, the Mahoney Company borrowed $177,000 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, Year 1. The annual payment on the loan based on the present value of annuity factor would be $44,331. The amount of principal repayment included in the December 31, Year 1 payment is: Multiple Choice $14,160 $44,331 $30,171 $37,674
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