A Company Purchased Equipment and Signed a 7-Year Installment Loan

question 60

Multiple Choice

A company purchased equipment and signed a 7-year installment loan at 9% annual interest.The annual payments equal $9,000.The present value for an annuity (series of payments) at 9% for 7 years is 5.0330.The present value of 1 (single sum) for 7 years at 9% is 0.5470.The present value of the loan is:

• A)$9,000.
• B)$4,923.
• C)$16,453.
• D)$63,000.
• E)$45,297.

---

Definitions:

Binding Minimum Wage

A government-set wage floor that is above the equilibrium level, leading to potential surpluses in the labor market, such as unemployment.

Teenage Labor

Employment involving individuals typically aged between 13 and 19 years, often regulated by labor laws concerning working hours, types of work, and working conditions to protect younger workers.

Minimum Wage

The lowest legal hourly pay that employers can offer to workers, set by governmental law or policy.

Minimum-Wage Laws

Legislation that sets the lowest hourly rate that can be paid to workers, aiming to protect workers from unduly low pay.