Sanders Co is paying off a $4,000 debt to Johnson, Inc. Assume that Sanders Co. has promised to pay off the debt in four years. What is the present value of each of the options below if the annual rate is 12%, and the payments are made as follows: Four payments of $1,000 annually are each made at the end of the year over the 4 years.

Answer rating: 100% (QA)

To find the present value of each payment option we can use the ... View the full answer