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Question F-6 A company borrows $25,000 from a bank, with an interest rate of 3%. The terms of borrowing provide that interest accrues based on
Question F-6 A company borrows $25,000 from a bank, with an interest rate of 3%. The terms of borrowing provide that interest accrues based on annual compounding, and the principle and interest are due in full 4 years from the date of borrowing. What is the total amount due on this borrowing at the due date? $28,000 $28,124 $28,137 $28,143 $28,148 $28,151 none of the above Question F-7 Based on the terms of a bond, it pays a holder $62,500 three years after it is issued. The stated interest rate on this bond is 4%, which is commensurate with the market interest rate. What is the present value of this bond? Assume annual compounding. $55,541 $55,549 $55,554 $55,559 $55,562 $55,568 none of the above
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