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A company borrowed cash from the bank and signed a 6-year note at 6% annual interest....

A company borrowed cash from the bank and signed a 6-year note at 6% annual interest. The present value for an annuity (series of payments) at 6% for 6 years is 4.9173. The present value of 1 (single sum) at 6% for 6 years is 0.7050. Each annual payment equals $8,800. The present value of the note is:

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Answer #1

Present value of the note=$8,800*Present value of annuity factor(6%,6)

=8,800*4.9173

which is equal to

=$43,272.24

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