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Y_Kistochka [10]
3 years ago
7

A company purchased equipment and signed a 7-year installment loan at 9% annual interest. The annual payments equal $9,000. The

present value of an annuity for 7 years at 9% is 5.0330. The present value of the loan is:
Business
1 answer:
konstantin123 [22]3 years ago
5 0

Answer:

<u>The present value of the loan is $45,297</u>

Explanation:

Instalment (A)= $9,000.00

PV factor (B)= 5.033

Present value of loan (A x B)

=$ 45,297

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