On March 1, 2016, Mandau Services issued a 3% long-term notes payable for $15,000 It is payable over a 3-year term in $5,000 principal installments on March 1 of each year, beginning March 1, 2017. Each yearly installment will include both principal repayment of $5,000 and interest payment for the preceding one-year period. What is the amount of total cash payment that Mandau will make on March 1, 2017?
A) $5,000
B) $5,450
C) $15,000
D) $5,225
B .Principal payment $5,000
Add: Interest ($15,000 x 3%) 450
Total cash payment $5,450
Business
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