Trure/False

1-The present value of an annuity is equal to the sum of the individual future values for each payment.

2-The factor for the present value of an annuity at 8% for 10 years is 6.7101. This implies that an annuity of ten $15,000 payments at 8% yields a present value of $2,235.

3-If a credit card sale is made, the seller debits Cash and credits Sales for the same amount.

) A company receives a 10%, 120-day note for $1,500. The total interest due on the maturity date is: (Use 360 days a year.)

A) $50.00.

B) $150.00.

C) $75.00.

D) $37.50.

E) $87.50