Question 2

An amortization schedule details each loan payment's allocation between principal as well as interest and the beginning and ending balances of the loan. O A) True O B) False Long-term liabilities can be structured either with an equal principal payment or with equal total payment. O A) True O B) False On March 1, 2018, Mandy Services issued a 3% long-term notes payable for $15,000. It is payable over a 3-year term in $5000 principal installments on March 1 of each year, beginning March 1. 2019. Each yearly installment will include both principal repayment of $5000 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) $5000 O B) $5450 O c) $5225 D) $15,000