of $1, PVA of $1, EVAD 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 nea whole dollar amount.) Step 1: Calculate the PV of the Ordinary Annuity Component: Payment 13,000 Present Value: Step 2: Convert the Annuity to a Single Sum: Payment: 13,000 Present Value:
of $1, PVA of $1, EVAD 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 nea whole dollar amount.) Step 1: Calculate the PV of the Ordinary Annuity Component: Payment 13,000 Present Value: Step 2: Convert the Annuity to a Single Sum: Payment: 13,000 Present Value:
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
Related questions
Question
![Canliss Mining Company borrowed money from a local bank. The note the company signed requires five annual
installment payments of $13,000 not due for three years. The interest rate on the note is 4%. (FV of $1, PV of $1, FVA
of $1, PVA of $1, EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
What amount did Canliss borrow? (Do not round intermediate calculations. Round your final answers to nearest
whole dollar amount.)
Step 1: Calculate the PV of the Ordinary Annulty Component:
Payment:
13,000
Present Value:
Step 2: Convert the Annulty to a Single Sum:
Payment:
2$
13,000
n3D
Present Value:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fac4958bc-2dae-4df9-8b0f-7a43d89259b8%2Fb6a1ae5e-65ce-4350-a8be-9d65a6fcdf28%2Fe63m62a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Canliss Mining Company borrowed money from a local bank. The note the company signed requires five annual
installment payments of $13,000 not due for three years. The interest rate on the note is 4%. (FV of $1, PV of $1, FVA
of $1, PVA of $1, EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
What amount did Canliss borrow? (Do not round intermediate calculations. Round your final answers to nearest
whole dollar amount.)
Step 1: Calculate the PV of the Ordinary Annulty Component:
Payment:
13,000
Present Value:
Step 2: Convert the Annulty to a Single Sum:
Payment:
2$
13,000
n3D
Present Value:
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