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A Machine Is Purchased by Making Payments of €15,000 at the Beginning

Question 62

Multiple Choice

A machine is purchased by making payments of €15,000 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 at 10% 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) €100,734
B) €91,578
C) €62,548
D) €56,862

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