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Determine the present value of the note

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Question - A company borrowed cash from the bank by signing a 5-year, 8%; installment note. The present value for an annuity (series of payments) at 8%; for 5 years is 3.9927. The present value of 1 (single sum) at 8%; for 5 years is .6806. Each annual payment equals $75,000. Determine the present value of the note?

A. $9,000.00

B. $4,923.00

C. $16,453.00

D. $45,297.00

Reference no: EM133061696

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