Find the present value of the loan is

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Problem 1: A company must repay the bank a single payment of $22,000 cash in 4 years for a loan it entered into. The loan is at 8% interest compounded annually. The present value factor for 4 years at 8% is .7350. The present value of an annuity factor for 4 years at 8% is 3.3121. The present value of the loan (rounded) is:

Multiple Choice

Option 1: $16,170.

Option 2: $22,000.

Option 3: $23,770.

Option 4: $6,642.

Option 5: $72,866.

Reference no: EM132674089

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