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On January 1, Year 1, the Mahoney Company borrowed $170,000 cash from Sun Bank by issuing a five-year 8% term note. The principal and interest

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On January 1, Year 1, the Mahoney Company borrowed $170,000 cash from Sun Bank by issuing a five-year 8% term note. The principal and interest are repaid by making annual payments beginning on December 31, Year 1 The annual payment on the loan based on the present value of annuity factor would be $40,775 The amount of principal repayment included in the December 31, Year 1 payment is Multiple Choice $13.600 $37,513 40775

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