A small construction company is considering the purchase of a used bulldozer for 100,000 SR. They don't have enough cash now to pay this amount and decided to pay equal amounts for the coming 7 years, starting from the end of the first year. How much to pay annually if the interest rate is 5%. O a. 16455 O b. 13826 O c. 14217 O d. 18341 e. 15781

A small construction company is considering the purchase of a used bulldozer for 100,000 SR. They don't have enough cash now to pay this amount and decided to pay equal amounts for the coming 7 years, starting from the end of the first year. How much to pay annually if the interest rate is 5%. O a. 16455 O b. 13826 O c. 14217 O d. 18341 e. 15781

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

A small construction company is considering the purchase of a used
bulldozer for 100,000 SR. They don't have enough cash now to pay this
amount and decided to pay equal amounts for the coming 7 years, starting
from the end of the first year. How much to pay annually if the interest rate is
5%.
a. 16455
O b. 13826
C. 14217
O d. 18341
e. 15781

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