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A company purchased equipment and signed a 3-year installment loan at 10% annual interest. The annual payments equal $11,300. The present value of an annuity
A company purchased equipment and signed a 3-year installment loan at 10% annual interest. The annual payments equal $11,300. The present value of an annuity factor for 3 years at 10% is 2.4869. The present value of a single sum factor for 3 years at 10% is .7513. The present value of the loan is:
a. $11,300 b. $8,490 c. $15,041 d. $33,900 e. $28,102
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