Otto Co. borrows money on April 30, 2019, by promising to make four payments of $13,000 each
Question:
Otto Co. borrows money on April 30, 2019, by promising to make four payments of $13,000 each on November 1, 2019; May 1,2020; November 1, 2020; and May 1, 2021.
1. How much money is Otto able to borrow if the interest rate is 8%, compounded semiannually?
2. How much money is Otto able to borrow if the interest rate is 12%, compounded semiannually?
3. How much money is Otto able to borrow if the interest rate is 16%, compounded semiannually?
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1Present value of the annuity Payment size 13000 Number of payments 4 Interest rate 4 semiannu...View the full answer
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