Problem: Cullumber Co. Issued for cash $119000, 3-year note bearing interest at 6% to Crane, Inc. The market rate of interest for a note of similar risk 8%, One step in calculating the cash received from the issuance of the note is to:
1) Multiply $7140 by the table value of 3 periods and 6% present value of an ordinary annuity table
2) Multiply $9520 by the table value for 3 periods ad 8% from the present value of 1 table.
3) Multiply $9520 by the table value of 3 periods and 6% from the present value of 1 table.
4) Multiply $7140 by the table value for 3 periods and 8% from the present value of an ordinary annuity table.