=+EX 14-16 Present value of an annuity

✔ $21,070,740 648 Chapter 14 Long-Term Liabilities: Bonds and Notes On the first day of the fiscal year, Hammond Company obtained a $ 44,000, seven-year, 5% installment note from Vegas Bank. The note requires annual payments of $7,604, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $2,200 and principal repayment of $5,404.