A PIECE OF MACHINERY CAN BE BOUGHT FOR P10,000.00 CASH OR FOR P2,000.00DOWN AND PAYMENTS OF P750 PER YEAR FOR 15 YEARS. WHAT IS THE ANNUALINTEREST RATE FOR THE TIME PAYMENTS?

solution 10,000 = 2000 + 750(PVIF @i% for 15 years) 8000 = 750(PVIF @i% for 15 years) 10.67 = PVIF…

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 P10,000.00 CASH OR FOR P2,000.00 DOWN AND PAYMENTS OF P750 PER YEAR FOR 15 YEARS. WHAT IS THE ANNUAL INTEREST RATE FOR THE TIME PAYMENTS?