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Otto Co. borrows money on April 30, 2016, by promising to make four payments of $13,000 each on November 1, 2016; May 1, 2017; November
Otto Co. borrows money on April 30, 2016, by promising to make four payments of $13,000 each on November 1, 2016; May 1, 2017; November 1, 2017, and May 1, 2018. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to nearest whole dollar. Round "Table Factor" to 4 decimals.) 1. How much money is Otto able to borrow if the interest rate is 8%, compounded semiannually? Periodic Cash Flow Table Factor -Present Value 2. How much money is Otto able to borrow if the interest rate is 12%, compounded semiannually? Periodic Cash Flow Table FactorE Present Value
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