Ines Corporation Bought a New Machine and Agreed to Pay

question 69

Multiple Choice

Ines Corporation bought a new machine and agreed to pay for it in equal annual instalments of $10,000 at the end of each of the next four years.The payments include both interest and principal.The rate of interest for this transaction is 8%.The total amount of interest that Ines will pay is closest to?

• A)$2,963
• B)$3,200
• C)$6,879
• D)The interest cost can't be determined.

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Definitions:

Middle Management

Managers who serve as an intermediary between senior management and operational staff, often responsible for translating strategic objectives into actionable plans.

Top Executives

Individuals who hold the highest-level management positions in an organization, responsible for developing strategies and policies to achieve organizational goals.

Board of Directors

A group of individuals elected to represent shareholders and make high-level decisions about the direction and policy of a company.

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An individual who establishes and initiates the creation of a company or business.