A company purchased equipment and signed a 7-year installment loan at 9% annual

Question

A company purchased equipment and signed a 7-year installment loan at 9% annual interest. The annual payments equal $9,000. The present value factor for an annuity for 7 years at 9% is 5.0330. The present value of the loan is:        $9,000
       $5,033
       $63,000
       $57,330
       $45,297 A company purchased equipment and signed a 7-year installment loan at 9% annual interest. The annual payments equal $9,000. The present value factor for an annuity for 7 years at 9% is 5.0330. The present value of the loan is:

Explanation / Answer

present value of the loan is = 9000*5.033=$45,297

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