Exercise B-11 Present value with semiannual Compounding LO C1, P3 Otto Co. borrows money on April...

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Exercise B-11 Present value with semiannual Compounding LO C1, P3 Otto Co. borrows money on April 30, 2016, by promising to m 2. How much money is Otto able to borrow if the interest rate is 6%, compounded semiannually? х Table Factor = Present Value

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Answer 1

Answer #1

No.	Periodic cash flow	x	Table factor	=	Present value
1	26000	x	3.902	=	101452
2	26000	x	3.717	=	96642
3	26000	x	3.630	=	94380

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