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Six Company sells an asset with a $1 million fair value to A Company. A Company...

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Accounting

Six Company sells an asset with a $1 million fair value to ACompany. A Company agrees to make six equal payments, each to bepaid one year apart, commencing on the date of sale. The paymentsinclude principal and 6% annual interest. What is the amount of theannual payments? can u solve this using the financial calculatormethod (pv= fv= n= pmt= )and is this gonna be using beginning mode(annuity due) or end mode (ordinary annuity)

Answer & Explanation Solved by verified expert
3.9 Ratings (768 Votes)
Sale value 1000000 Annuity calculation Year PVIF 6 0 1 1 0943396226 2 088999644 3 0839619283 4 0792093663 5 0747258173 Annuity factor 5212363786 PVAF6 n6 Years5521236    See Answer
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