A Company Must Repay the Bank a Single Payment of $20,000

Multiple Choice

A company must repay the bank a single payment of $20,000 cash in 3 years for a loan it entered into.The loan is at 8% interest compounded annually.The present value factor for 3 years at 8% is 0.7938.The present value of an annuity factor for 3 years at 8% is 2.5771.The present value of the loan (rounded) is:

A) $15,876.
B) $20,000.
C) $25,195.
D) $7,761.
E) $51,542.