Allied Company purchased a new machine by signing a note under which it agreed to make a down payment at time of purchase and then make subsequent annual payments at the end of each year for the number of years indicated in the table below: Down payment required Subsequent annual payments Number of annual payments Annual interest rate $6.000 $5,000 6 8% Which one of the following statements is correct with respect to the above situation? Multiple Choice The amount of Interest paid over the life of the note is equal to the subsequent annual payment amount times the number of annual payments the recorded purchase price If the interest rate is as given in the table but interest is being compounded quarterly rather than annually me recorded purchase price would be greater The following are the time value of money formulas presented in the instructor notes Use them as needed to answer the question below. You may also use the time value of money tables found on the last pages of your text for click on the appropriate link given below) FV=PV (FVIF.In). FVOA - PMT (FVIFOA.In). FVPV (PVIE.In) PVOA - PMT (PVIFOA in) Planning Company determines it will need to replace a plece of equipment which will cost $50,000 four years from now It desires to have the $50,000 on hand at the end of 4 years by making 4 equal deposits at the end of each of the next four years into an account atas bank on which it expects will earn 6% annually Calculate the amount of the deposit (rounded to the nearest dollar) that needs to be made at the end of each of the next 4 years (FV OLS1. P of $1. EVA of S1, and PVA LS1) (Use appropriate factor(s) from the tables provided.) Multiple Choice