They noticed that as technology is racing ahead at an incredible pace, they need to manufacture products with improved performance and new features. For that, they bought a circuit board making machine for $250,000. The equipment has an estimated life of ten years and an estimated salvage value of $15.000. Fox borrowed the money from Chase Bank, which is a national bank headquartered in Manhattan, New York City. The bank offered the following three financing plans to Fox to pay off the loan: Option . A variant interest rate monthly payment over six years, with the following interest rate schedule. In this option, the lowest payment is for the first year and each subsequent payment will be just 1% over the previous one until the end of the third year and the payments will be constant afterwards. Year 1 2 3 4 5 6 Interest rate 12% 10% 9% 11% 14% 12% Compute the outstanding balance at the end of five years