Periods

Hence Present Value of $1 PVOA $1_________

3% 5% 6% 10% 12% 3% 5% 6% 10% 12%

1 .971 .952 .943 .909 .893 .971 .952 .943 .909 .893

5 .863 .784 .747 .621 .567 4.579 4.330 4.212 3.791 3.605

6 .838 .746 .705 .564 .507 5.417 5.076 4.917 4.335 4.111

10 .744 .614 .558 .386 .322 8.530 7.722 7.360 6.145 5.650

12 .701 557 .497 .319 .257 9.954 8.863 8.384 6.814 6.194

A firm purchases equipment issuing an interest-bearing note that calls for 12 semiannual payments of $39,014.45. The first payment is due immediately. The note bears interest at 6% APR. Determine the original cost of the equipment:

a. $388,349

b. $400,000

c. $454,128

d. $440,082