Intro

Webster Mining is considering the purchase of a new sorting machine. The quote consists of quarterly payments of $19,000 for 8 years at an annual interest rate of 12% (APR with quarterly compounding).

Attempt 3/10 for 8 pts.

Part 1

If the first payment begins one quarter after date of purchase. What is the purchase price of the equipment?

**What if the first payment begins one year after the date of purchase? --for this question, go to TVM II (BONUS).