On January 1, Boston Company completed the following transactions (use a 7% annual interest rate...
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Accounting
On January 1, Boston Company completed the following transactions (use a 7% annual interest rate for all transactions):
a)Borrowed $116,600 for seven years. Will pay $6,800 interest at the end of each year and repay the $116,600 at the end of the 7th year.
In transaction (a), determine the present value of the debt. ( Round to the nearest dollar)
I used my financial Calculator to evaluate the annuity payments to get the Present value of 36,647.1679 and then evaluated the payment at the end of the 7th year to get PV of 72,238.9701, which totals 108,886 But I am being told this is incorrect. I don't understand what I am doing wrong.
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