Question 27 4 points Save Answer Present Value of Ordinary Periods Value of of 2

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Question 27 4 points Save Answer Present Value of Ordinary Periods Value of of 2% 3% 4% 6% 2% 3%. 496 696 8900 1.9416 1.9135 18861 1.8334 2.8839 2.8286 2.7751 2.6730 9057 8626 8219 7473 4.7135 4.5797 44518 42124 6 8880 8375903 7050 5.6014 4172 52421 4.9173 8203 7441 6756 558482 81109 7.3601 2 9612 9426 9246 3 9423 9151 889 8396 10 On January 1, 2015, a company purchased office furniture at a contract price of $45,000 to be paid on December 31, 2017. The company signed a 6%, non-interest bearing note to fnance this purchase. Interest is compounded annually. Determine the cost of the office funiture. A $37,782 B. $45,000 C. $37,688 D.$36,900 E. $40,095 si Question 2701332 Moving to another question will save this response.

Explanation / Answer

Correct answer is Option A i.e. $37,782

Explanation:

Cost of the Office will be = Contract Price x PVIF(6%, 3 years)

........................................= $45,000 x 0.8396

.......................................= $37,782

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