Multiple Choice
A company borrowed $40,000 cash from the bank and signed a 6-year note at 7% annual interest.The present value of an annuity factor for 6 years at 7% is 4.7665.The present value of a single sum factor for 6 years at 7% is 0.6663.The annual payments equal:
A) $26,652.00.
B) $8,391.90.
C) $40,000.00.
D) $60,033.02.
E) $190,660.00.
Correct Answer:
Verified
Correct Answer:
Verified
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