Your Firm Intends to Finance the Purchase of a New

Multiple Choice

Your firm intends to finance the purchase of a new construction crane. The cost is $1,500,000. What is the size of the annual ordinary annuity payment if the loan is amortized over a ten-year period at a rate of 8.50%?

A) $228,611.56
B) $127,500
C) $3,391,475.16
D) There is not enough information to answer this question.