Question: On March 1, 2018, Mandy Services issued a 9% long-term notes payable for $21,000. It is payable over a 3-year term in $7,000 principal installments

 On March 1, 2018, Mandy Services issued a 9% long-term notes

On March 1, 2018, Mandy Services issued a 9% long-term notes payable for $21,000. It is payable over a 3-year term in $7,000 principal installments on March 1 of each year, beginning March 1, 2019. Each yearly installment will include both principal repayment of $7,000 and interest payment for the preceding one-year period. What is the amount of total cash payment that Mandy will make on March 1, 2019? O A $21,000 OB. $7,945 OC. $8,890 OD. $7,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!