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

-Micro Brewery borrows $300,000 to be repaid in equal installments over a period of three 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) $55,379.
B) $106,059.
C) $30,138.
D) $60,276.

Question

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

-Micro Brewery borrows $300,000 to be repaid in equal installments over a period of three 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) $55,379. 
B) $106,059. 
C) $30,138. 
D) $60,276.

Quizplus · Accepted Answer

$300,000 ÷ 5.41719* = $55,379
*PVA of $1: n = 6; i = 3%

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