1. A promise to repay $94,000 three years from now at an interest rate of 8%....

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1. A promise to repay $94,000 three years from now at an interest rate of 8%. 2. An agreement to make three separate annual payments of $25,000, with the first payment occurring 1 year from now. The annual interest rate is 5%. Option 1 Table Value Amount Present Value Loan amount Option 2 Table Value Amount Present Value Annual payments 1. A promise to repay $94,000 three years from now at an interest rate of 8%. 2. An agreement to make three separate annual payments of $25,000, with the first payment occurring 1 year from now. The annual interest rate is 5%. Option 1 Table Value Amount Present Value Loan amount Option 2 Table Value Amount Present Value Annual payments

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1 Present value of loan amount of 94000 to be repaid in 3 years 8 calculated using formula P... View the full answer