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 for 7 years at 9% is …

Question

asked Mar 17, 2021 234k views

1 Answer

Gary Forbis · Answer 1 · 2021-03-22T22:58:24+0000

Answer:

The present value of the loan is $45,297

Step-by-step explanation:

Instalment (A)= $9,000.00

PV factor (B)= 5.033

Present value of loan (A x B)

=$ 45,297