Question

g A company purchased equipment and signed a 5-year installment loan at 10% annual interest. The annual payments equal $10,900. The present value for an annuity (series of payments) at 10% for 5 years is 3.7908. The present value of 1 (single sum) for 5 years at 10% is .6209. The present value of the loan is:

Answer 1

The answer is $45,297.
A company purchased equipment and signed a 7-year installment loan at 9% annual interest.The annual payments equal $9,000. The present value of an annuity factor for 7 years at 9% is5.0330. The present value of the loan is:$9,000.$5,033.$63,000.$57,330.$45,297.
$9,000 * 5.0330 = $45,297.