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Pockets lent $26,000 to Lego Construction on January 1, 2018. Lego signed a three-year, 6% installment...

Pockets lent $26,000 to Lego Construction on January 1, 2018. Lego signed a three-year, 6% installment note to be paid in three equal payments at the end of each year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:
Calculate the amount of one installment payment. (Round your final answer to the nearest whole dollar.)

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Answer #1
Answer:
Amount of one installment payment
                     = Amount Borrowed / Present value Annuity Factor ( 6% , 3 years )
                     =   $ 26,000 / 2.67301
                     =    $ 9,726.86
                     =     $ 9,727
Amount of one installment payment   =     $ 9,727
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