Present and future values of $1 at 11% are presented below.
PV of $1 FV of $1 PVA of $1 FVA of $1
1 0.90090 1.11000 0.90090 1.0000
2 0.81162 1.23210 1.71252 2.1100
3 0.73119 1.36763 2.44371 3.3421
4 0.65873 1.51807 3.10245 4.7097
5 0.59345 1.68506 3.69590 6.2278
6 0.53464 1.87041 4.23054 7.9129
Help Se
On October 1, 2024, Justine Company purchased equipment from Napa Incorporated in exchange for a noninterest-bearing note payable in five equal annual payments of $630,000, beginning October 1, 2025.
Similar borrowings have carried an 11% interest rate. The equipment would be recorded at:
Multiple Choice
$2,328,417
$2,803,500
$2.665.240
$3,150,000