A company borrowed cash from the bank by signing a 3-year, 6% installment note. The present value
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A company borrowed cash from the bank by signing a 3-year, 6% installment note. The present value of an annuity factor at 6% for 3 years is 2.6730. The present value of a single sum at 6% for 3 years is .8396. Each annual payment equals $76,100. The present value of the note is:
a. $85,409.65
b. $28,469.88
c. $228,300.00
d. $203,415.30
e. $90,638.40
Related Book For
Financial Accounting Information For Decisions
ISBN: 978-0324672701
6th Edition
Authors: Robert w Ingram, Thomas L Albright
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