A company with a fiscal year ending on December 31 borrowed money with an installment...
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Accounting
A company with a fiscal year ending on December 31 borrowed money with an installment loan of $500,000 on January 1, 2017. The loan agreement requires the company to make five equal annual payments that will fully amortize the loan in exactly five years. The first payment on the loan was made December 31, 2017 and the annual interest rate associated with the loan was 8 percent. The amount of cash payment made every year by the borrower will:
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increase over time.
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decrease over time.
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remain the same over the life of the loan.
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