I need answer of this question solution general accounting A company borrowed cash from the bank by signing a 5-year,8% installment note. The present value of an annuity factor at8% for 5 years is 3.9927. Each annual payment equals$75,000. The present value of the note is:a. $56,352.84b. $92,921.41c. $299,452.50d. $187,842.81

Step 1: The present value of the note is equal to the multiplication of the Present value of the…

Answered: A company borrowed cash from the bank…

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 the bank by signing a 5-year, 8% installment note. The present value of an annuity factor at 8% for 5 years is 3.9927. Each annual payment equals $75,000. The present value of the note is: a. $56,352.84 b. $92,921.41 c. $299,452.50 d. $187,842.81