Question: On August 1, a $56,400, 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 $56,400, 7%, 3-year installment note payable is

On August 1, a $56,400, 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 present value of a single sum factor for 3 years at 7% is 0.8163. The payment each July 31 will be: Multiple Choice $18,800.00 0 $21.491.31. $21,491.31. $19,600.00 $19,200.00

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