On January 2, 2021, the Smith Corporation will acquire a machine from Smythe Co., to be used in its manufacturing process. Smythe has presented Smith with the following acquisition options:

1.Lease the machine. The machine can be leased for a seven-year period for an annual lease payment of $55,000, with the first payment due upon the signing of the lease agreement. All maintenance and insurance expenses for the machine, which approximate $4,000 each year, would be paid by Smith (by reimbursing Smythe for the expenses at the end of each year). The current rate of interest both for long-term lease agreements and related executory costs is 8%.

2.Purchase the machine. Smith can pay Smythe outright for the purchase of the machine, but Smith would have to borrow the necessary money from a bank. The interest rate for the loan would be 9%; the loan would be repaid to the bank in a single payment on December 31, 2025.

Smiths existing repair and maintenance program and insurance coverage can absorb the cost of the new machine with no additional out-of-pocket expense.

I already know the answer to part 1. What i want to know is how do i get the purchase price that is borrowed from the bank in part 2