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aliina [53]
2 years ago
5

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. $9,000
B. $4,923
C. $16,453
D. $63,000
E. $45,297
Mathematics
2 answers:
hodyreva [135]2 years ago
8 0
Here we apply the present value of annuity formula. This formula is given by:
P=A[(1-1/()1+r)^n]/r
where:
P=present value
A=future value
r=rate
n=number of terms
NOTE: 
[(1-1/()1+r)^n]/r
is called the present value of annuity factor, this has been given as 0.5033.
Thus our formula can be written as:
P=5.033A
Thus to evaluate the present value we plug in the values in our formula:
hence:
P=5.033(9000)
P=45297
ANTONII [103]2 years ago
7 0
First, we should apply the present value of annuity formula. It is PV=A \frac{1- \frac{1}{(1+r)^{N}}}{r} and in this formula \frac{1- \frac{1}{(1+r)^{N}}}{r} is the present value of annuity factor.

Then, we can find the present value of the annuity by writing that, PV=9000 * 5.033 = 45297 <span>
</span>
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Tanzania [10]

Answer:

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Step-by-step explanation:

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2 years ago
In a poker hand, John has a very strong hand and bets 5 dollars. The probability that Mary has a better hand is .04. If Mary had
mr_godi [17]

Answer:

When Mary raises the probability that she has a better hand is 0.273

Step-by-step explanation:

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3 0
2 years ago
Darryl deposits $1,500 into a savings account that has a simple interest rate of 2.7%. Lori deposits $1,400 into a savings accou
igor_vitrenko [27]
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A = $1,905.00

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3 0
2 years ago
Read 2 more answers
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Tresset [83]

Answer:

Step-by-step explanation:

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8 0
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n = 5
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6 0
2 years ago
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