1. A promise to repay $94.000 three years from now at an interest rate of 8%. 2. An agreement to make three separate annual payments of $25,000, with the first payment occurring 1 year from now. The annual interest rate is 5%. Option 1 Loan amount Option 2 Annual payments Table Value Table Value Amount Amount Present Value Present Value

1. A promise to repay $94.000 three years from now at an interest rate of 8%. 2. An agreement to make three separate annual payments of $25,000, with the first payment occurring 1 year from now. The annual interest rate is 5%. Option 1 Loan amount Option 2 Annual payments Table Value Table Value Amount Amount Present Value Present Value

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 11E

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