Question: On August 1, a $45,600, 7%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest

On August 1, a $45,600, 7%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest be paid each year on July 31. The present value of an annuity factor for 3 years at 7% is 2.6243. The payment each July 31 will be:

$15,200.00.

$17,376.06.

$16,000.00.

$15,600.00.

$2,176.06.

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