Course Solutions Uncategorized (Solved) : Company Must Repay Bank Single Payment 29 000 Cash 3 Years Loan Entered Loan 8 Interest C Q33346253 . . . .

(Solved) : Company Must Repay Bank Single Payment 29 000 Cash 3 Years Loan Entered Loan 8 Interest C Q33346253 . . . .

 

A company must repay the bank a single payment of $29,000 cashin 3 years for a loan it entered into. The loan is at 8% interestcompounded annually. The present value factor for 3 years at 8% is.7938. The present value of an annuity factor for 3 years at 8% is2.5771. The present value of the loan (rounded) is:

Multiple Choice

$23,020.

$29,000.

$36,547.

$11,253.

$74,736.

Expert Answer


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