A Company Purchased Equipment and Signed a 7-Year Installment Loan

Multiple Choice

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 factor for 7 years at 9% is 5.0330.The present value of a single sum factor for 7 years at 9% is 0.5470. The present value of the loan is:

A) $4,923.
B) $63,000.
C) $9,000.
D) $45,297.
E) $16,453.