Present and future value tables of $1 at 3% are presented below:

-Rosie's Florist borrows $300,000 to be paid off in six years. The loan payments are semiannual with the first payment due in six months, and interest is at 6%. What is the amount of each payment?
A) $25,750.
B) $29,761.
C) $30,139.
D) $25,500.

Question

Present and future value tables of $1 at 3% are presented below:

-Rosie's Florist borrows $300,000 to be paid off in six years. The loan payments are semiannual with the first payment due in six months, and interest is at 6%. What is the amount of each payment?
A) $25,750. 
B) $29,761. 
C) $30,139. 
D) $25,500.

Quizplus · Accepted Answer

$300,000 ÷ 9.95400* = $30,139
*PVA of $1: n = 12; i = 3%

Present and Future Value Tables of $1 at 3% Are