Your firm intends to finance the purchase of a new construction crane. The cost is $1,500,000. What is the size of the annual ordinary annuity payment if the loan is amortized over a ten-year period at a rate of 8.50%?
A) $228,611.56
B) $127,500.00
C) $3,391,475.16
D) There is not enough information to answer this question.
Answer: A
Explanation: A)
PMT = PV / = $1,500,000 / = $228,611.56.
MODE = END
INPUT 10 8.5 1,500,000 ? 0
KEY N I/Y PV PMT FV
CPT 228,611.56
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