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.
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