n three equal payments at the end of each year. The present value of an ordinary annuity of $1 for 3 periods at 5% is 2.72325. Required: Calculate the amount of one installment payment. Note: Round your final answer to the nearest whole dollar. Installment poumont

n three equal payments at the end of each year. The present value of an ordinary annuity of $1 for 3 periods at 5% is 2.72325. Required: Calculate the amount of one installment payment. Note: Round your final answer to the nearest whole dollar. Installment poumont

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 3MC: Electro Corporation bought a new machine and agreed to pay for it in equal annual installments of...

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Question

Adam Baum Company borrowed $53,000 from B. A. Ware on January 1, 2024, and signed a three-year, 5% installment note to be paid
in three equal payments at the end of each year. The present value of an ordinary annuity of $1 for 3 periods at 5% is 2.72325.
Required:
Calculate the amount of one installment payment.
Note: Round your final answer to the nearest whole dollar.
Installment payment

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