Jenks Company Financed the Purchase of a Machine by Making

question 69

Multiple Choice

Jenks Company financed the purchase of a machine by making payments of $18,000 at the end of each of five years.The appropriate rate of interest was 8%.The future value of one for five periods at 8% is 1.46933.The future value of an ordinary annuity for five periods at 8% is 5.8666.The present value of an ordinary annuity for five periods at 8% is 3.99271.What was the cost of the machine to Jenks?

• A)$26,448
• B)$71,869
• C)$90,000
• D)$105,600

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