Canliss Mining Company borrowed money from a local bank. The note the company signed requires five annual installment payments of $11,000 beginning one year from today. The interest rate on the note is 6%.(FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What amount did Canliss borrow

$46,336

Explanation:

The amount Canliss borrowed can be determined by calculating the present value of the instalment payments

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow each year from year 1 to 5 = $11,000

I = 6%

PV = $46,336

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

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