Answer:
Total PV= $522.92
Explanation:
Giving the following information:
First payment= $450 at the end of the 7th year
Second payment= $450 at the end of the 12 year
Interest rate= 6% compounded annually
<u>To calculate the present value, we need to use the following formula on each payment:</u>
PV= FV/(1+i)^n
Cf1= 450/1.06^7= 299.28
Cf2= 450/1.06^12= 223.64
Total PV= $522.92
Answer:
Option D is correct.
<u>Interest expense in 2017= $18,783</u>
Explanation:
Interest expense in 2017 = 187825*10% = $18782.5( Approx $18,783)
Answer[:]
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[:] DustinBR [:]
