Exercise B-2 Present value of an amount LO P1

On January 1, 2016, a company agrees to pay $10,000 in three years. If the annual interest rate is 2%, determine how much cash the company can borrow with this agreement. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.)

Future Value		Table Factor		Amount Borrowed
			=