Multiple Choice
A company purchased equipment and signed a 7-year installment loan at 9% annual interest.The annual payments equal $9,000.The present value of an annuity factor for 7 years at 9% is 5.0330.The present value of a single sum factor for 7 years at 9% is 0.5470.The present value of the loan is:
A) $9,000.
B) $4,923.
C) $16,453.
D) $63,000.
E) $45,297.
Correct Answer:
Verified
Correct Answer:
Verified
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