On January 1, Snipes Construction paid for earth-moving equipment by issuing a $300,000, 3-year note that specified 2% interest to be paid on December 31 of each year.
The equipment's retail cash price was unknown, but it was determined that a reasonable interest rate was 5%.
(FV of $1,
PV of $1,
FVA of $1,
PVA of $1,
FVAD of $1and
PVAD of $1)
(Use appropriate factor(s) from the tables provided.)