Please Help!! The answer is $15,000 but I'm not sure how to calculate it. A contractor borrowed money to purchase a piec
Posted: Sun May 08, 2022 9:06 am
Please Help!! The answer is $15,000 but I'm not sure how to
calculate it.
A contractor borrowed money to purchase a piece of
equipment for $120,000, and he was required to make year-end
payments of $25,000 only for each of the 5 years. If the marginally
acceptable rate of return is 5% per year, how much is the balance
of the purchase price that the contractor will have to pay back at
the end of 5 years, in addition to the annual $25,000
payment?
calculate it.
A contractor borrowed money to purchase a piece of
equipment for $120,000, and he was required to make year-end
payments of $25,000 only for each of the 5 years. If the marginally
acceptable rate of return is 5% per year, how much is the balance
of the purchase price that the contractor will have to pay back at
the end of 5 years, in addition to the annual $25,000
payment?