A piece of machinery can be bought for P10,000 cash or for P2,000 down and 20,000 at the end of 15 years. What is the annual(compound) interest rate for the time payments?Use the editor to format your answer

Present value = $10,000 Down payment = $2,000 Number of payments, n = 15 Total amount paid = 15 ×…

Answered: A piece of machinery can be bought for…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A piece of machinery can be bought for P10,000 cash or for P2,000 down and 20,000 at the end of 15 years. What is the annual (compound) interest rate for the time payments?