Canliss Mining Company borrowed money from a local bank. The note the company signed requires five annual installment payments of $12,500 not due for three years. The interest rate on the note is 9%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What amount did Canliss borrow? (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) Answer is not complete. Step 1: Calculate the PV of the Ordinary Annuity Component: Payment: n = Present Value: 1= Present Value: Step 2: Convert the Annuity to a Single Sum: Payment: $ n = i = 12,500✔ 5✔ 9% ✔ 48,621✔ 48,621✔ 5 x 9% ✔

Canliss Mining Company borrowed money from a local bank. The note the company signed requires five annual installment payments of $12,500 not due for three years. The interest rate on the note is 9%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What amount did Canliss borrow? (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) Answer is not complete. Step 1: Calculate the PV of the Ordinary Annuity Component: Payment: n = Present Value: 1= Present Value: Step 2: Convert the Annuity to a Single Sum: Payment: $ n = i = 12,500✔ 5✔ 9% ✔ 48,621✔ 48,621✔ 5 x 9% ✔

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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