A company must repay the bank a single payment of $21,000 cash in 3 years for a loan it entered into. The loan is at 10% interest compounded annually. The present value factor for 3 years at 10% is 0.7513. The present value of an annuity factor for 3 years at 10% is 2.4869. The present value of the loan (rounded) is:
A. $21,000.
B. $23,707.
C. $8444.
D. $52,225.
E. $15,777.
Answer: E
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