Question: On March 1, 2020, Modo Services issued a 5% long-term notes payable for $25,000. It is payable over a 5-year term in $5,000 principal installments

On March 1, 2020, Modo Services issued a 5% long-term notes payable for $25,000. It is payable over a 5-year term in $5,000 principal installments on March 1 of each year, beginning March 1, 2021. Each yearly installment will include both principal repayment of $5,000 and interest payment for the preceding one-year period. What is the amount of total cash payment that Modo will make on March 1, 2021? $6,042 O $5,000 $6,250 $8.470

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