2.Skagway Company purchases a machine on 1/1/17. The four Annual Payments will be $1,000 each January 1, beginning 1/1/17 through 1/1/20 inclusive. Interest Rate is 5% compounded annually. What is the approximate true cost of the machine?

Select one:

a. $3,546

b. $3,723

c. $3,329

d. $4,546

3.Hyde Park Company purchases a machine and agrees to pay five $1,000 annual installments beginning one year from the purchase date. The computation to determine the true cost of the machine is based on the

Select one:

a. Future Value of Annuity

b. Present Value of Annuity

c. Future Value of Annuity Due

d. Present Value of Annuity Due