On January 1, 2020, Smith Company signed a five-year Note for the acquisition of equipment. Annual interest and principal payments of $15,000, based on an interest rate of 8% are to be made every December 31, beginning with December 2020. Compute the value of the Note at 1/1/20. Following are appropriate factors from tables: Table % / n Present Value of annuity due $1 Present Value of ordinary annuity of $1 Present value of $1 Future Value of ordinary annuity of $1 8%/5 4.31213 3.99271 .68058 5.86660 Required Computation:
On January 1, 2020, Smith Company signed a five-year Note for the acquisition of equipment. Annual interest and principal payments of $15,000, based on an interest rate of 8% are to be made every December 31, beginning with December 2020. Compute the value of the Note at 1/1/20. Following are appropriate factors from tables: Table % / n Present Value of annuity due $1 Present Value of ordinary annuity of $1 Present value of $1 Future Value of ordinary annuity of $1 8%/5 4.31213 3.99271 .68058 5.86660 Required Computation:
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
ChapterM: Time Value Of Money Module
Section: Chapter Questions
Problem 5MC: On May 1, 2019, a company purchased a new machine that it does not have to pay for until May 1,...
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On January 1, 2020, Smith Company signed a five-year Note for the acquisition of equipment. Annual interest and principal payments of $15,000, based on an interest rate of 8% are to be made every December 31, beginning with December 2020. Compute the value of the Note at 1/1/20. Following are appropriate factors from tables:
|
Table % / n |
|
Present Value of ordinary annuity of $1 |
Present value of $1 |
|
|
8%/5 |
4.31213 |
3.99271 |
.68058 |
5.86660 |
Required Computation:
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