Question

Hanks Delivery loc. purchased a van to deliver goods. The vendor offered Hawks Delivery he financing terms that required Hawls Delivery Inc. to make 5 equal ayments of $ 23000 at the end of each year . The current interest rate for Hawks Delivery i2,59% How much would Hawis Delvery long record as the initial purchase price of the van Round you answer to the nearest dolar. Your Anster DISNE

Answer 1

Answer:

Annual Installment : $23,000

Life : 5 Years

Interest rate : 9%

Annuity Value : 1/(1.09) + 1/(1.09)^2 +1/(1.09)^3 +1/(1.09)^4 +1/(1.09)^5

Record Price : Annual Installment * Annuity Value

= $23,000 * 3.88965

= $89,462

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