on jan 1, Firm A buys a warehouse by issuing a 7% annual rate $900,000 note, term of 4 years. the market rate of similar notes is 10%. what is the present value of the note? PV note = PV principal + PV interest PV principal = 900,000*(PVF .68301) = 614,709 PV interest = 63,000*(PVA 3.16987)=199,702 sum = PV note = 814,411 I understand all that using the discount factors. how do i enter it into the calculator? i cannot figure it out. my attempt… total interest = .07*900,000*4 years = 252,000 PV = 900000+252000=1,152,000 mkt i = 7% n = 4 PV = 786,831.5 can someone tell me what i did wrong
nevermind. inputs are FV = 900k i=10 n=4 pmt = 63k PV = x = 814411