Q1:

USE THE FOLLOWING INFORMATION FOR THIS QUESTION:

Installment note payable borrowed from the bank	$100,000
Present value interest factor from table	2.5771
Signed for	3 years
Annual interest rate	8%
Payments are made	Annually

Compute the periodic payment required.

Group of answer choices

- $8,000

- $69,167

- $33,268

- $38,803

- zero

- unable to determine

Q2:

USE THE FOLLOWING INFORMATION FOR THIS QUESTION:

Installment note payable borrowed from the bank	$205,000
Present value interest factor from table	2.80164
Signed for	3 years
Annual interest rate	3.5%
Payments are made	Annually

The amount of the FIRST periodic monthly payment that is attributable to INTEREST EXPENSE equals what amount?

Group of answer choices

- $7,175

- $65,996

- $73,171

- $139,004

- $4,865

- Zero

- unable to determine