Compute the amount that can be borrowed under each of the following circumstances: (PV of $1. EV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "Table value" to 4 decimal places.) 1. A promise to repay $90,000 seven years from now at an interest rate of 6%. 2. An agreement made on February 1, 2019, to make three separate payments of $20,000 on February 1 of 2020, 2021, and 2022. The annual interest rate is 10%.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Appendix B homework i
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Exercise B-13 Present value of an amount and of an annuity LO P1, P3
Compute the amount that can be borrowed under each of the following circumstances: (PV of $1. FV of $1. PVA of $1, and FVA of $1)
(Use appropriate factor(s) from the tables provided. Round your "Table value" to 4 decimal places.)
1. A promise to repay $90,000 seven years from now at an interest rate of 6%.
2. An agreement made on February 1, 2019, to make three separate payments of $20,000 on February 1 of 2020, 2021, and 2022.
The annual interest rate is 10%.
Option 1
Table Value
Amount
Present Value
1.3310
20,000
26,620
Loan amount
Amount
Present Value
Table Value
Option 2
Annual payments
es
0.
Next >
17 of 17
%24
%24
Transcribed Image Text:_con=con&external_browser%=0&launchUrl%3https%253A%252F%252Flms.mheduc inde Appendix B homework i Saved Exercise B-13 Present value of an amount and of an annuity LO P1, P3 Compute the amount that can be borrowed under each of the following circumstances: (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "Table value" to 4 decimal places.) 1. A promise to repay $90,000 seven years from now at an interest rate of 6%. 2. An agreement made on February 1, 2019, to make three separate payments of $20,000 on February 1 of 2020, 2021, and 2022. The annual interest rate is 10%. Option 1 Table Value Amount Present Value 1.3310 20,000 26,620 Loan amount Amount Present Value Table Value Option 2 Annual payments es 0. Next > 17 of 17 %24 %24
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