please provide correct answer A company borrowed cash from the bank by signing a 6-year, 7% installment note. Thepresent value of an annuity factor at 7% for 6 years is 4.3121. Each annual paymentequals $85,000.What is the present value of the note?A. $120,874.25B. $245,820.60C. $366,528.50D. $412,750.00

To calculate the present value of the note, we use the given information:The present value of an…

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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Sharapovich Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the interest rate was 5% compounded annually. Sharapovich Inc. will make payments of $11,548.74 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.
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Assuming a 360-day year, the interest charged by the bank, at the rate of 7%, on a 90-day, discounted note payable of $124,800 is ______ .Round your answer to the nearest whole dollar. a.$2,184 b.$8,736 c.$4,368 d.$124,800
A bank charges an interest rate of interest is 6% compounded annually. A customer takes a loan of $159,348.29, which is to be paid back by annual payments of $18,000 at the end of each year for 13 years. What is the outstanding balance of the loan after the 2nd year? a. $141,963.74 b. $20,224.80 c. $37,080.00 d. $123,348.29 e. $33,001.07
Assuming a 360-day year, the interest charged by the bank, at the rate of 6%, on a 90-day, discounted note payable of $100,000 is O $3,000 A Ob. $6,000 Oc. $1,500 Od $500

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A company borrowed cash from the bank by signing a 6-year, 7% installment note. The present value of an annuity factor at 7% for 6 years is 4.3121. Each annual payment equals $85,000. What is the present value of the note? A. $120,874.25 B. $245,820.60 C. $366,528.50 D. $412,750.00