Exercise B$-11($Algo$)$ Present value with semiannual Compounding LO C$1,$ P$3$

Otto Company borrows money on January $1$ and promises to pay it back in four semiannual payments of $$27,000$ each on June $30$ and

December $31$ of both this year and next year. $($PV of $$1,$ FV of $$1,$ PVA of $$1,$ and FVA of $$1)$

Note: Use appropriate factor$($s$)$ from the tables provided. Round "Table Factor" to $4$ decimal places.

How much money is Otto able to borrow if the interest rate is $2\%,$ compounded semiannually?

How much money is Otto able to borrow if the interest rate is $6\%,$ compounded semiannually?

How much money is Otto able to borrow if the interest rate is $8\%,$ compounded semiannually?

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Required $1$

How much money is Otto able to borrow if the interest rate is $2\%,$ compounded semiannually?