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Finney Company Borrowed €1,600,000 from BankTwo on January 1, 2013

Question 305

Multiple Choice

Finney Company borrowed €1,600,000 from BankTwo on January 1, 2013 in order to expand its mining capabilities. The five-year note required annual payments of €416,698 and carried an annual interest rate of 9.5%. What is the balance in the notes payable account at December 31, 2014?


A) €1,600,000
B) €1,045,458
C) €1,335,302
D) €1,296,000

Correct Answer:

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