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