Otto Co borrows money on April 30 2016 by promising to make

Otto Co. borrows money on April 30, 2016, by promising to make four payments of $29,000 each on November 1, 2016; May 1, 2017 November 1, 2017, and May 1, 2018. (PV of $1. EV of $1. PVA of $1, and FVA of $1 (Use appropriate factors) from the tables provided. Round \"Table Factor\" to 4 decimal places.) 1. How much money is Otto able to borrow if the interest rate is 2%, compounded semiannually? Periodic Cash Table Factor Present Value Flow How much money is Otto able to borrow if the interest rate is 6%, compounded semiannually? : Periodic Cash Flow Table FactorPresent Value 3. How much money is Otto able to borrow if the interest rate is 8%, compounded semiannually? Periodic Cash Flow le FactorPresent Value

Solution

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Periodic cash flow Table Factor Present Value a) 29,000                 3.9020         113,157.00 b) 29,000                 3.7171         107,795.85 c) 29,000                 3.6299         105,266.96 Time PVF at 1% PVF at 3% PVF at 4%                                     0.50                 0.9901                 0.9709                 0.9615                                     1.00                 0.9803                 0.9426                 0.9246                                     1.50                 0.9706                 0.9151                 0.8890                                     2.00                 0.9610                 0.8885                 0.8548 PVF for 2 Years                 3.9020                 3.7171                 3.6299