A company must repay the bank $10,000 cash in three years for a loan. The loan agreement specifies 8% interest compounded annually. The present value factor for three years at 8% is 0.7938. How much cash did the company receive from the bank on the day they borrowed this money? A. $12,400.
B. $9,200.
C. $7,938.
D. $7,600.
E. $10,000.

C. $7,938

Explanation:

This is a straightforward question. From the question, we are informed that a company must repay the bank $10,000 cash in three years for a loan and that the loan agreement specifies 8% interest compounded annually and we are given the present value factor for three years at 8% is 0.7938.

Therefore, the amount of cash that the company receive from the bank on the day they borrowed this money will be:

= $10000 × Present value factor at 8%

= $10000 × 0.7938

= $7938

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.