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Amazon Rafting just bought a new trailer. To pay for the trailer, the company took out a loan that requires Amazon Rafting to pay the
Amazon Rafting just bought a new trailer. To pay for the trailer, the company took out a loan that requires Amazon Rafting to pay the bank a special payment of $8,700 in 5 years and also pay the bank regular payments of $4,100 each year forever. The interest rate on the loan is 14.3 percent per year and the first $4,100 yearly payment will be paid in one year from today. What was the price of the trailer? An amount less than $14,000 or an amount equal to or greater than $62,000 An amount equal to or greater than $14,000 but less than $25,000 An amount equal to or greater than $25,000 but less than $36,000 An amount equal to or greater than $36,000 but less than $49,000 An amount equal to or greater than $49,000 but less than $62,000
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