As a note payable will be paid using periodic payments, including both principal and interest, the future value of the note is zero.

Name: As a note payable will be paid using periodic payments, including both principal and interest, the future value of the note is zero.
Brand: Quizplus
Rating: 4.8 (49 reviews)

Question

Quizplus · Accepted Answer

When a note payable is structured with periodic payments that cover both principal and interest, the principal is gradually reduced to zero by the end of the term, resulting in a future value of zero.

As a Note Payable Will Be Paid Using Periodic Payments