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A Company borrowed money from a local bank. The note the company signed requires five annual installment payments of $13,000 not due for three years.
A Company borrowed money from a local bank. The note the company signed requires five annual installment payments of $13,000 not due for three years. The interest rate on the note is 4%.
What amount did the company borrow?
Note: Use tables, Excel, or a financial calculator. Round your intermediate and final answers to nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
\begin{tabular}{|l|} \hline Step 1: Calculate the PV of the Ordinary Annuity Component: \\ \hline Payment: \\ \hline \\ \hline Present Value: \\ \hline Step 2: Convert the Annuity to a Single Sum: \\ \hline Payment: \\ \hline \end{tabular}
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