Question: PLEASE HELP ASAP Calculation. Note: Students can choose to use PV Factor Tables (provided on page 13), financial calculators or Excel, and show calculation details
Calculation. Note: Students can choose to use PV Factor Tables (provided on page 13), financial calculators or Excel, and show calculation details for the consideration of partial marks if the answers are not correct. 1. The company issues a note to a customer to borrow cash for five years, and will pay $500,000 to the customer at the end of the five-year period but not pay any interest. If the annual market interest rate is 7%, please calculate the present value of the note (compounded annually and rounded to the nearest dollar). 2. Based on Part 1, if the company will pay $500,000 at the end of the five-year period, and interest $30,000 at the end of each of the five years, please calculate the present value of the note (rounded to the nearest dollar). 3. Based on Part 1, if the company will pay $500,000 at the end of the five-year period, and interest $30,000 at the beginning of each of the five years, please calculate the present value of the note (rounded to the nearest dollar). Table A.2 Present Value of 1 Table A.4 Present Value of An Ordinary Annuity of 1
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