A company borrowed $50,000 cash from the bank and signed a six-year note at 7%.The present value factor for an annuity for six years at 7% is 4.7665.The annual annuity payments equal $10,490.The present value of the loan is:
A)$10,490
B)$11,004
C)$50,000
D)$52,450
E)$238,325

Question

Quizplus · Accepted Answer

The present value of the loan is the amount borrowed, which is $50,000.

A Company Borrowed $50,000 Cash from the Bank and Signed