Unpaid Balance = Factory Price x (1 - Down Payment %)
= $100,000 x (1 - 0.10) = $90,000
Annuity = [PVA x r ] / [1 - (1 + r)-n]
= [$90,000 x 0.08] / [1 + (1.08)-8]
= $7,200 / 0.4597 = $15,661.33
Hence, Option "B" is correct.
QUESTION 50 If you buy a factory for $100,000 and the terms are 10% down, the...
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