Davis Corporation Borrowed $50,000 on January 1,2016

Question 121
True False

Davis Corporation borrowed $50,000 on January 1,2016.The loan is for a ten-year period and has an annual interest rate of 9%.At the end of each year,Davis will make a payment of $7,791,which includes both principal and interest.The amount of the payment for 2016 that is reduction of principal is $3,587.