If You Buy a Factory for $250,000 and the Terms

question 25

Multiple Choice

If you buy a factory for $250,000 and the terms are 20% down,the balance to be paid off over 30 years at a 12 percent rate of interest on the unpaid balance,what are the 30 equal annual payments? (Round to the nearest whole dollar)

• A) $20,593
• B) $31,036
• C) $24,829
• D) $50,212
• E) $6,667

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Definitions:

Lower Prices

Lower prices refer to a reduction in the cost at which goods and services are sold, often aimed at increasing consumer demand or being competitive in the market.

Complementary Product

A product that adds value to another primary product when used together, encouraging consumers to purchase both.

Operations Manager

A professional responsible for overseeing, designing, and controlling the process of production and redesigning business operations.

Net Present Value

A financial metric used to evaluate the profitability of an investment or project, representing the difference between the present value of its cash inflows and outflows.