company buys a machine for $17,000, which it agrees to pay for in six equal annual payments, beginning one year after he date of purchase, at an annual interest rate of 5%. Immediately after the second payment, the terms of the agreement are hanged to allow the balance due to be paid off in a single payment the next year. What is the final single payment?

company buys a machine for $17,000, which it agrees to pay for in six equal annual payments, beginning one year after he date of purchase, at an annual interest rate of 5%. Immediately after the second payment, the terms of the agreement are hanged to allow the balance due to be paid off in a single payment the next year. What is the final single payment?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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C
A company buys a machine for $17,000, which it agrees to pay for in six equal annual payments, beginning one year after
the date of purchase, at an annual interest rate of 5%. Immediately after the second payment, the terms of the agreement are
changed to allow the balance due to be paid off in a single payment the next year. What is the final single payment?

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