A company purchased equipment and signed a 3-year installment loan at 6% annual interest. The annual payments equal $10,100. The present value of an annuity factor for 3 years at 6% is 2.6730. The present value of a single sum factor for 3 years at 6% is .8396. The present value of the loan is:

Multiple Choice

• $10,100.

• $8,480.

• $12,030.

• $30,300.

• $26,997.