Question: Otto Co borrows money on April 30 2015 by promising

Otto Co. borrows money on April 30, 2015, by promising to make four payments of $13,000 each on November 1, 2015; May 1, 2016; November 1, 2016; and May 1, 2017.
1. How much money is Otto able to borrow if the interest rate is 8%, compounded semiannually?
2. How much money is Otto able to borrow if the interest rate is 12%, compounded semiannually?
3. How much money is Otto able to borrow if the interest rate is 16%, compounded semiannually?

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  • CreatedApril 23, 2015
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