CPA Materials, Inc. borrowed cash from the bank by signing a 5-year, 5% installment note. The present value for an annuity (series of payments) at 5% for 5 years is 4.3295. The present value of 1 (single sum) at 5% for 5 years is .7835. Each annual payment equals $76,300. The present value of the note is: $59,781.05. $390,122.90 $330,340.85. $29,890.53. $76,300.00.

On January 1, Shadow Creek Golf Resort borrowed $500,000 cash by signing a 5-year, 6.5% installment note requiring equal payments each December 31 of $9,783. What amount of interest expense will be included in the first annual payment? $469,372 $30,628 $117,396 $32,500 $100,000 Variegated, Incorporated issued 15-year, 5% bonds with a par value of $860,000. Interest is paid semiannually. The market rate on the issue date was 4.5%. Adonis received $925,000 in cash proceeds. Which of the following statements is true? Variegated must pay $860,000 at maturity plus 30 interest payments of $21,500 each.

Variegated must pay $925,000 at maturity and 15 interest payments of $43,000 each. Variegated must pay $860,000 at maturity plus 15 interest payments of $43,000 each. Variegated must pay $925,000 at maturity and no interest payments. Variegated must pay $925,000 at maturity plus 30 interest payments of $21,500 each.