A Machine Is Purchased by Making Payments of $5,000 at the Beginning

Multiple Choice

A machine is purchased by making payments of $5,000 at the beginning of each of the next five years.The interest rate was 10%.The future value of an ordinary annuity of 1 for five periods is 6.10510.The present value of an ordinary annuity of 1 for five periods is 3.79079.What was the cost of the machine?

A) $33,578
B) $30,526
C) $20,849
D) $18,954