A company borrows $2,000,000 at 12% interest per year. If the company repays theloan in full in one lump sum amount after 3 years, what is the total amount of thepayment?$2,420,374$3,195,568$2,809,856$2,662,000

Interest means the extra amount which we received because of investment made and will be paid in…

Answered: A company borrows $2,000,000 at 12%…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A loan of 15,000 is repaid by annual payments of principal starting one year after the loan is made, plus quarterly payments of interest on the outstanding balance at a quarterly rate of 4%. Find the present value of the payments to yield an investor a quarterly rate of 3% if the principal payments are 244> CHAPTER 3 (a) 1000 per year for 15 years; or (b) 1000 in the 1st year, 2000 in the 2nd year,..., 5000 in the 5th year; or (c) 5000 in the 1st year, 4000 in the 2nd year,..., 1000 in the 5tℎ year.
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A company borrows $2,000,000 at 12% interest per year. If the company repays the loan in full in one lump sum amount after 3 years, what is the total amount of the payment? $2,420,374 $3,195,568 $2,809,856 $2,662,000