A Company Borrowed Cash from the Bank by Signing a 5-Year,8

Multiple Choice

A company borrowed cash from the bank by signing a 5-year,8% installment note.The present value of an annuity factor at 8% for 5 years is 3.9927.The present value of a single sum at 8% for 5 years is .6806.Each annual payment equals $75,000.The present value of the note is:

A) $56,352.84.
B) $18,784.28.
C) $375,000.00
D) $299,452.50.
E) $110,196.89.