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n three equal payments at the end of each year. The present value of an ordinary annuity of $1 for 3 periods at 5% is 2.72325. Required: Calculate the amount of one installment payment. Note: Round your final answer to the nearest whole dollar. Installment poumont

n three equal payments at the end of each year. The present value of an ordinary annuity of $1 for 3 periods at 5% is 2.72325. Required: Calculate the amount of one installment payment. Note: Round your final answer to the nearest whole dollar. Installment poumont

FINANCIAL ACCOUNTING
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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Adam Baum Company borrowed $53,000 from B. A. Ware on January 1, 2024, and signed a three-year, 5% installment note to be paid in three equal payments at the end of each year. The present value of an ordinary annuity of $1 for 3 periods at 5% is 2.72325. Required: Calculate the amount of one installment payment. Note: Round your final answer to the nearest whole dollar. Installment payment
Transcribed Image Text:Adam Baum Company borrowed $53,000 from B. A. Ware on January 1, 2024, and signed a three-year, 5% installment note to be paid in three equal payments at the end of each year. The present value of an ordinary annuity of $1 for 3 periods at 5% is 2.72325. Required: Calculate the amount of one installment payment. Note: Round your final answer to the nearest whole dollar. Installment payment
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