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Anika [276]
4 years ago
6

On March 1, 2018, Mandy Services issued a 3% long-term notes payable for $15,000. It is payable over a 3-year term in $5000 prin

cipal installments on March 1 of each year, beginning March 1, 2019. Each yearly installment will include both principal repayment of $5000 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?
Business
1 answer:
Vesna [10]4 years ago
5 0

Answer:

$5,450.

Explanation:

Payment of Interest expenses = $15,000 * 3% = $450

Principal repayment = $5,000

Total cash payment on March 1, 2019 = $5,000 + $450 = $5,450.

Therefore, the amount of total cash payment that Mandy will make on March 1, 2019 is $5,450.

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