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 $240,000 noninterest-bearing note due in six 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?
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Accounting And Auditing Research Tools And Strategies
Authors: Thomas R. Weirich, Thomas C. Pearson, Natalie Tatiana Churyk
7th Edition
9780470506974
