A company recently took out a $25,000 loan with interest payable at the rate of 9 percent, compounded annually. The loan is to be paid off in one lump sum, at the end of 3 years. Given it is to include both principal and interest, the amount of the loan payment will beclosestto:
FV of $1@ 9% for 3 years = 1.295
PV of $1@9% for 3 years = 0.7722
- $27,250.
- $31,750.
- $32,375.
- $34,000.