Jenks Company Financed the Purchase of a Machine by Making

Multiple Choice

Jenks Company financed the purchase of a machine by making payments of £24,000 at the end of each of five years. The appropriate rate of interest was 8%. The future value of one for five periods at 8% is 1.46933. The future value of an ordinary annuity for five periods at 8% is 5.8666. The present value of an ordinary annuity for five periods at 8% is 3.99271. What was the cost of the machine to Jenks?

A) £35,264
B) £95,825
C) £120,000
D) £140,800