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Corporate Fin Focused Approach

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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General accounting

If a $100,000 payment at the end of each year for the
next five years is scheduled, what is the equivalent
amount if one were to make a lump sum payment now?
(10% interest.)
A. $162,370
B. $679,397
C. $379,100
D. $500,000

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