Present value of the loan


A company purchased equipment and signed a 7-year installment loan at 9% annual interest. The annual payments equal $9,000. The present value factor for an annuity for 7 years at 9% is 5.0330. The present value of the loan is:

a) $9,000

b) $5,033

c) $63,000

d) $57,330

e) $45,297

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Accounting Basics: Present value of the loan
Reference No:- TGS046443

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