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Waterway Industries financed the purchase of a machine by making payments of $25500 at the end of each of five years. The appropriate rate of
Waterway Industries financed the purchase of a machine by making payments of $25500 at the end of each of five years. The appropriate rate of interest was 9%. The future value of one for five periods at 9% is 1.53862. The future value of an ordinary annuity for five periods at 9% is 5.98471. The present value of an ordinary annuity for five periods at 9% is 3.88965. What was the cost of the machine to Waterway?
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