A company borrowed cash from the bank by signing a 3-year, 6% installment note. The present value

Fantastic news! We've Found the answer you've been seeking!

Question:

A company borrowed cash from the bank by signing a 3-year, 6% installment note. The present value of an annuity factor at 6% for 3 years is 2.6730. The present value of a single sum at 6% for 3 years is .8396. Each annual payment equals $76,100. The present value of the note is:

a. $85,409.65

b. $28,469.88

c. $228,300.00

d. $203,415.30

e. $90,638.40