Question
Present and future value tables of 1 at 11% are presented below. PV of $1 FV of $1 PVA of $1 FVA of $1 1
Present and future value tables of 1 at 11% are presented below.
| PV of $1 | FV of $1 | PVA of $1 | FVA of $1 | |
| 1 | 0.90090 | 1.11000 | 0.90090 | 1.0000 |
| 2 | 0.81162 | 1.23210 | 1.71252 | 2.1100 |
| 3 | 0.73119 | 1.36763 | 2.44371 | 3.3421 |
| 4 | 0.65873 | 1.51807 | 3.10245 | 4.7097 |
| 5 | 0.59345 | 1.68506 | 3.69590 | 6.2278 |
| 6 | 0.53464 | 1.87041 | 4.23054 | 7.9129 |
| Spielberg Inc. signed a $210,000 non interest-bearing note due in three years from a production company eager to do business. Comparable borrowings have carried an 11% interest rate. What is the value of this debt at its inception? (Do not round intermediate calculations and round your final answer to the nearest dollar amount.) |
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Modern Internal Auditing Appraising Operations And Controls
Authors: Victor Z. Brink, Herbert N. Witt
4th Edition
0471080977, 978-0471080978
