On January 1, Year 1, Scores or Oars, Inc., borrowed $200,000 at 7%. The loan will be repaid with equal annual installment payments of $50,000 made on the last day of each year, which is the company's yearend. The first payment will include a debit to Notes Payable of $______.
a. 36000
b. 37000
c. 38000
d. 40000
Answer: a. 36000
Business
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