Question
Compute the amount that can be borrowed under each of the following circumstances: (PV of $1, FV of $1, PVA of $1, and FVA of
Compute the amount that can be borrowed under each of the following circumstances: (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "Table value" to 4 decimal places.) A promise to repay $90,000 six years from now at an interest rate of 7%. An agreement to make three separate annual payments of $13,000, with the first payment occurring 1 year from now. The annual interest rate is 5%.
The chart shows
option one---- Table Value---Amount-----Present value
loan amount. ? ? ?
Option two--- Table Value---Amount-----Present value
Annual payments. ? ? ?
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