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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Definitions:

Blood Urea Nitrogen

A measure of the amount of urea nitrogen, a waste product from the breakdown of protein, in the blood, which can indicate kidney function.

Kidney Function

The capabilities and efficiency of the kidneys, particularly in filtering waste products from the blood and excreting them as urine.

Mean Corpuscular Hemoglobin

A measurement of the average amount of hemoglobin contained within a single red blood cell, used in diagnosing anemia.

Mean Corpuscular Volume

A measure of the average volume of a red blood cell, used in diagnosing and classifying anemias.