Canliss Mining Company borrowed money from a local bank. The note the company si

Question

Canliss Mining Company borrowed money from a local bank. The note the company signed requires five annual installment payments of $13,000 beginning immediately. The interest rate on the note is 4%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

What amount did Canliss borrow?

Canliss Mining Company borrowed money from a local bank. The note the company signed requires five annual installment payments of $13,000 beginning immediately. The interest rate on the note is 4%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Explanation / Answer

annual installment = 13,000$

n=5years, i=4%

money borrowed = (annual insatllment)*{PVAD(n=5years, i=4%)}

= (13000*(4.62990)

= 60188.7$

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.