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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Essentials of Accounting for Governmental and Not-for-Profit Organizations
Authors: Paul A. Copley
10th Edition
007352705X, 978-0073527055
