A company must repay the bank a single payment of $20,000 cash in 3 years for a loan it entered into. The loan is at 8% interest compounded annually. The present value of 1 (single sum) at 8% for 3 years is 0.7938. The present value of an annuity (series of payments) at 8% for 3 years is 2.5771. The present value of the loan (rounded) is:
A. $15,876.
B. $7,761.
C. $51,542.
D. $20,000.
E. $25,195.
Answer: A
You might also like to view...
Merit raises, bonuses, and commissions are all types of ______.
a. wages b. perquisites c. incentives d. benefits
Matsuko is fairly pessimistic and frequently expresses her doubts about her ability to learn the requirements of her job after being promoted into a new position under your supervision. Discuss your job as a manager when it comes to the critical OB foundation of Matsuko’s thoughts.
What will be an ideal response?
The term ________ refers to the computer and electronic technology that makes it possible for banks to offer electronic payment and collection systems to bank customers
A) electronic protocols application software (EPAS) B) electronic funds transfer system (EFTS) C) originating depository financial institution (ODFI) D) open real-time currency application (ORCA)
In his last order, the bakery manager at Bread of the Earth Bakery purchased a different brand of whole wheat flour from his regular supplier, Best Bakery Supplies. This is an example of a
A. straight buy. B. modified rebuy. C. straight rebuy. D. new-task buy. E. simplified buy.