Carla Vista Productions borrowed some money from the CaliforniaFinance Company at a rate of 13.80...

Carla Vista Productions borrowed some money from the California Finance Company at a rate of 13.80 percent for a seven-year period. The loan calls for a payment of $1,286,000 each year beginning today. How much did Carla Vista borrow? (Round factor values to 4 decimal places, e.g. 1.5214 and final answer to nearest whole dollar, e.g. 5,275.)

Carla Vista borrowed

Expert Solution

Present Value Annuity Due =

where r is the rate of Return for compounding period = 13.80%

n is the no of compounding period 7 years

=

= $6314336.60

Amount borrowed is $6314336.60

jeff jeffy answered 2 years ago

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