Josef Company borrowed money that must be repaid in 20 years. The company wants to make sure the loan will be repaid at the end of year 20. So it invests $13,100 at the end of each year at 12% interest compounded annually. What was the amount of the original loan? (Use Table 13.1.) (Do not round intermediate calculations. Round your answer to the nearest cent.)

Josef Company borrowed money that must be repaid in 20 years. The company wants to make sure the loan will be repaid at the end of year 20. So it invests $13,100 at the end of each year at 12% interest compounded annually. What was the amount of the original loan? (Use Table 13.1.) (Do not round intermediate calculations. Round your answer to the nearest cent.)

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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