Question
A company must repay the bank a single payment of $37,000 cash in 5 years for a loan it entered into. The loan is at
A company must repay the bank a single payment of $37,000 cash in 5 years for a loan it entered into. The loan is at 6% interest compounded annually. The present value factor for 5 years at 6% is .7473. The present value of an annuity factor for 5 years at 6% is 4.2124. The present value of the loan (rounded) is:
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Managerial Accounting Principles Of Accounting II
Authors: Eric W. Noreen, Peter C. Brewer, Ray H. Garrison
6th Edition
0077681258, 978-0077681258
