XY Company owed a $45,489 due on January 1,2015.An agreement was reached to pay it off in five equal annual payments,starting on December 31,2015.The interest rate was 10 percent.The total amount of interest paid under the terms of the agreement was (round annual payment to nearest $1):
A) $25,000
B) $22,745
C) $14,511
D) $6,000

Question

Quizplus · Accepted Answer

The Answer of XY Company owed a $45,489 due on January 1,2015.An agreement was reached to pay it off in five equal annual payments,starting on December 31,2015.The interest rate was 10 percent.The total amount of interest paid under the terms of the agreement was (round annual payment to nearest $1):
A) $25,000
B) $22,745
C) $14,511
D) $6,000

XY Company Owed a $45,489 Due on January 1,2015