We need to calculate the present value of each payment to arriving borrowing capacity amount. | ||||
1) | =18000*PVA$1 for 1% and 4 years | |||
=$18000*3.9020 | ||||
=$70236 | ||||
2) | =18000*PVA$1 for 3% and 4 years | |||
=$18000*3.7171 | ||||
$ 66,907.80 | ||||
3) | =18000*PVA$1 for 3% and 4 years | |||
=$18000*3.6299 | ||||
$ 65,338.20 | ||||
Please upvote. | ||||
Otto Co. borrows money on April 30, 2019, by promising to make four payments of $18,000...
TVM Assignment 0 • Otto Co, borrows money on April 30, 2019, by promising to make four payments of $19,000 each on November 1, 2019, May 1, 2020, November 1, 2020; and May 1, 2021 PV of S1, FV S1, PVA of S1, and FVA of 50 (Use appropriate factor(s) from the tables provided Round "Table Factor" to 4 decimal places.) 1. How much money is Otto able to borrow if the interest rate is 4%, compounded semiannually! 2. How...
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Otto Co. borrows money on April 30, 2016, by promising to make four payments of $19,000 each on November 1, 2016; May 1, 2017; November 1, 2017; and May 1, 2018. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) 1. How much money is Otto able to borrow if the interest rate is 6%, compounded semiannually? 2. How much money is...
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Mark Welsch deposits $6,500 in an account that earns interest at an annual rate of 4%, compounded quarterly. The $6,500 plus earned interest must remain in the account 5 years before it can be withdrawn. How much money will be in the account at the end of 5 years? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Present Value Table Factor...