A company purchased equipment and signed a 4-year installment loan at 6% annual interest. The annual payments equal $9300. The present value of an annuity factor for 4 years at 6% is 3.4651. The present value of a single sum factor for 4 years at 6% is 0.7921. The present value of the loan is:
A. $37,200.
B. $11,741.
C. $7367.
D. $32,225.
E. $9300.
Answer: D
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