On march 1, 2018, mandy services issued a 9% long-term notes payable for $15,000. it is payable over a 3 - year term in $5,000 principal installments on march 1 of each year, beginning march 1, 2019. each yearly installment will include both principal repayment of $5,000 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. $5,675
b. $6,350
c. $15,000
d. $5,000

Correct option is (B)

Explanation:

Given:

Principal amount = $15,000

Interest rate = 9% or 0.09

Maturity = 3 years

Every year Mandy Services make payment of $5,000 of principal amount and interest accrued in the previous year. In 2019, Interest accrued for 2018 would be:

Interest = Principal × rate × time

             = 15,000 × 0.09 × 1

             = $1,350

Total payment made by Mandy in 2019 = 5,000 + 1,350

                                                                     = $6,350

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%