Canliss Mining Company borrowed money from a local bank. The note the company signed requires five annual installment payments of $17,000 not due for three years. The interest rate on the note is 8%. (FV of $1, PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What amount did Canliss borrow? (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) Step 1: Calculate the PV of the Ordinary Annuity Component: Payment: n = Present Value: Step 2: Convert the Annuity to a Single Sum: Payment: n = Present Value:

Canliss Mining Company borrowed money from a local bank. The note the company signed requires five annual installment payments of $17,000 not due for three years. The interest rate on the note is 8%. (FV of $1, PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What amount did Canliss borrow? (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) Step 1: Calculate the PV of the Ordinary Annuity Component: Payment: n = Present Value: Step 2: Convert the Annuity to a Single Sum: Payment: n = Present Value:

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 17P

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