In October, the CEO of Saguaro, Inc. signs a note for $90,000 in order to buy new equipment. The note is due in five years, at 8% annual interest. Semiannual interest payments are due each April and October. Assuming no other long-term debt, what is the initial balance in the related long-term debt account?

A. $97,200
B. $90,000
C. $82,800
D. $93,600


Answer: B

Business

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