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A Machine Is Purchased by Making Payments of €15,000 at the Beginning

question 62

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A machine is purchased by making payments of €15,000 at the beginning of each of the next five years. The interest rate was 10%. The future value of an ordinary annuity of 1 for five periods at 10% is 6.10510. The present value of an ordinary annuity of 1 for five periods is 3.79079. What was the cost of the machine?


Definitions:

Inkjet Printer

A type of printer that squirts ink through tiny nozzles to produce print. Inkjet printers produce high-quality, high-resolution, color output.

Printing

The process of producing text, images, or graphics on paper or other substrates by means of a printer or print device.

Alignment Page

A test page printed by an inkjet printer used to adjust the alignment of the print cartridges for improved print quality.

HDMI

High-Definition Multimedia Interface, a proprietary audio/video interface for transmitting uncompressed video data and compressed or uncompressed digital audio data from an HDMI-compliant source device.

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