Pflug Ltd. signed an instalment note on January 1, 2020, in settlement of an account payable of $40,000 owed to Mott Ltd. Pflug is able to borrow funds from its bank at 11%, whereas Mott can borrow at the rate of 10%. The note calls for two equal payments of blended principal and interest to be made at December 31, 2020 and 2021. Using 

(1) Factor Table A.4, 

(2) A financial calculator, 

(3) Excel function PV, calculate the amount of the equal instalment payments that will be made to Mott Ltd. 

Table A.4

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(1+i) PVF-0A (n) periods 2% 2% 3% 4% 5% 6% 8% 9% 10% 11% 12% 15% 98039 97561 1.92742 2.85602 3.76197 97087 1.91347 188609 1.85941 96154 95238 94340 91743 90909 90090 1.78326 1.75911 1.73554 1.71252 1.69005 1.62571 92593 89286 86957 2 1.94156 2.82861 3,71710 3.62990 3.54595 4.57971 4.45182 4.32948 1.83339 2.67301 3,46511 4.21236 3.99271 3.88965 3.79079 3.69590 3.60478 3.35216 2.77509 2.72325 2.88388 3.80773 4.71346 2.57710 2.53130 2.48685 2.44371 2.40183 2.28323 3.31213 3.23972 3.16986 3.10245 3.03735 2.85498 4.64583 5.60143 6.47199 7.32548 4.62288 4.48592 4.35526 4.23054 4.11141 3.78448 5.58238 5.20637 5.03295 4.86842 4.71220 4.56376 4.16042 5.74664 5.53482 5.33493 5.14612 4.96764 4.48732 5.50813 5.41719 5.24214 5.07569 4.91732 6.34939 7.17014 8.16224 7.97087 6.23028 6.00205 5.78637 7.01969 6.73274 6.46321 6.20979 7.78611 7.43533 7.10782 6.80169 6.24689 5.99525 5.75902 5.53705 5.32825 4.77158 10 8.98259 8.75206 8.53020 8.11090 7.72173 7.36009 6.71008 6.41766 6.14457 5.88923 5.65022 5.01877 9.51421 9.25262 8.76048 8.30641 10.57534 10.25776 9.95400 9.38507 B.86325 11.34837 10.98319 10.63496 9.98565 9.39357 12.10625 11.69091 11.29607 10.56312 9.89864 12.84926 12.38138 11.93794 11.11839 10.37966 11 9.78685 7.88687 7.13896 6.80519 6.49506 6.20652 5.93770 5.23371 7.53608 7.16073 6.81369 6.49236 6.19437 5.42062 8.38384 8.85268 9.29498 8.24424 7.78615 7.36669 6.98187 6.62817 5.72448 9.71225 12 13 7.90378 7.48690 7.10336 6.74987 6.42355 5.58315 14 15 8.55948 8.06069 7.60608 7.19087 6.81086 5.84737 13.57771 13.05500 12.56110 11.65230 10.837m 10.10590 14.29187 13.71220 13.16612 12.16567 11.27407 10.47726 14.99203 14.35336 13.75351 12.65930 11.68959 10.82760 8.85137 8.31256 7.82371 7.37916 6.97399 5.95424 9.12164 8.54363 8.02155 7.54879 7.11963 6.04716 9.37189 8.75563 B.20141 7,70162 7.24967 6.12797 16 17 18 9.60360 8.95012 8.36492 7.83929 7.36578 6.19823 9.81815 9.12855 8.51356 7.96333 7.46944 6.25933 19 15.67846 14.97889 14.32380 13.13394 12.08532 11.15812 20 16.35143 15.58916 14.87747 13.59033 12.46221 11.46992 21 17.01121 16.18455 15.41502 14.02916 1282115 11.76408 10.01680 9.29224 8.64869 8.07507 7.56200 6.31246 17.65805 16.76541 15.93692 14.45112 13.16800 12.04158 10.20074 9.44243 8.77154 8.17574 7.64465 6.35866 18.29220 17.33211 16.44361 14.85684 13.48857 12.30338 10.37106 9.58021 8.88322 8.26643 7.71843 6.39884 18.91393 17.88499 16.93554 15.24696 13.79864 12.55036 10.52876 9.70661 8.98474 8.34814 7,78432 6.43377 19.52346 18.42438 17.41315 15.62208 14.09394 12.78336 10.67478 9.82258 9.07704 8.42174 7.84314 6.46415 22 23 24 25 26 27 28 20.12104 18.95061 17.87684 15.98277 14.37519 13.00317 10.80998 9.92897 9.16095 8.48806 7.89566 6.49056 20.70690 19.46401 18.32703 16.32959 14.64303 13.21053 10.93516 10.02658 9.23722 8.45780 7.94255 6.51353 21.28127 19.96489 18,76411 16.66306 14.89813 13.40616 11.05108 10.11613 9.30657 B.60162 7.98442 6.53351 21.84438 20.45355 19.18845 16.98371 15.14107 13.59072 11.15841 10.19828 9.36961 8.65011 8.02181 6.55088 22.39646 20.93029 19.60044 17.29203 15.37245 13.76483 11.25778 10.27365 9.42691 8.69379 8.05518 6.56598 29 30 31 22.93770 21.39541 20.00043 17.58849 15.59281 13.92909 11.34980 10.34280 9.47901 8.73315 8.08499 6.57911 32 33 34 23.46833 21.84918 20.38877 17.87355 15.80268 14.08404 11.43500 10.40624 9.52638 8.76860 8.11159 6.59053 23.98856 22.29188 20.76579 18.14765 16.00255 14.23023 11.51389 10.46444 9.56943 8.80054 8.13535 6.60046 24.49859 22.72379 21.13184 18.41120 16.19290 14.36814 11.58693 10.51784 9.60858 8.82932 8.15656 6.60910 24.99862 23.14516 21.48722 18.66461 16.37419 14.49825 11.65457 10.56682 9.64416 8.85524 8.17550 6.61661 35 36 37 25.48884 23.55625 21.83225 18.90828 16.54685 14.62099 1171719 10.61176 9.67651 887859 8.19241 6.62314 25.96945 23.95732 22.16724 19.14258 16.71129 14.73678 11.77518 10.65299 9.70592 8.89963 8.20751 6.62882 38 26.44064 24.34860 22.49246 19.36786 16.86789 14.84602 11.82887 10.69082 9.73265 8.91859 8.22099 6.63375 39 40 26.90259 24.73034 22.80822 19.58448 17.01704 14.94907 11.87858 10.72552 9.75697 8.93567 8.23303 6.63805 27.35548 25.10278 23.11477 19.79277 17.15909 15.04630 11.92461 10.75736 9.77905 8.95105 8.24378 6.64178