Ines Corporation Bought a New Machine and Agreed to Pay

Multiple Choice

Ines Corporation bought a new machine and agreed to pay for it in equal annual instalments of $10,000 at the end of each of the next four years.The payments include both interest and principal.The rate of interest for this transaction is 8%.The amount that Ines should record the cost of the machine at is closest to?

A) $29,401
B) $33,121
C) $37,037
D) $40,000