Question
24 A company must repay the bank a single payment of $31,000 cash in 6 years for a loan it entered into. The loan is
24 A company must repay the bank a single payment of $31,000 cash in 6 years for a loan it entered into. The loan is at 10% interest compounded annually. The present value of 1 (single sum) at 10% for 6 years is .5645. The present value of an annuity (series of payments) at 10% for 6 years is 4.3553. The present value of the loan (rounded) is:
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Financial & Managerial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
13th edition
9781133607618, 978-1285868776
