I want to correct answer general accounting A company borrowed cash from a bank by signing a 6-year,9% installment note. The present value of an annuity factorat 9% for 6 years is 4.4859. Each annual payment equals$50,000. The present value of the note is:a) $174,295.00b) $224,295.00c) $324,295.00d) $124,295.00

Step 1: Identify the Formula• The formula for the present value of an annuity is:• PV = PMT ×…

Answered: A company borrowed cash from a bank by…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 26P

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A company borrowed cash from a bank by signing a 6-year, 9% installment note. The present value of an annuity factor at 9% for 6 years is 4.4859. Each annual payment equals $50,000. The present value of the note is: a) $174,295.00 b) $224,295.00 c) $324,295.00 d) $124,295.00