Your firm intends to finance the purchase of a new construction crane. The cost is $1,500,000. How large is the payment at the end of year ten if the crane is financed at a rate of 8.50% as a discount loan?
A) $228,611.56
B) $127,500.00
C) $3,391,475.16
D) There is not enough information to answer this question.
Answer: C
Explanation: C) FV = PV × (1 + r)n = $1,500,000 × (1.085)10 = $3,391,475.16.
MODE = END
INPUT 10 8.5 -1,500,000 0 ?
KEY N I/Y PV PMT FV
CPT 3,391,475.16
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