On December 1,2016,Gardner Products borrowed $92,000 on a 5%,10-year note with annual installment payments of $9,200 plus interest due on December 1 of each subsequent year.Which of the following describes the first installment payment made on December 1,2017? (Round your answer to the nearest whole number. )

Question

Quizplus · Accepted Answer

The first installment payment includes the principal payment of $9,200 and the interest for the first year. The interest is calculated as 5% of $92,000, which is $4,600.

On December 1,2016,Gardner Products Borrowed $92,000 on a 5%,10-Year Note