Potash Corporation Financed the Purchase of a Building by Making

Multiple Choice

Potash Corporation financed the purchase of a building by making semiannual payments of $20,000 a year for the next twenty years,with the first payment due one year from today.The purchase cost of the building is considered to be the present value of those payments.What was the purchase cost of the building to Potash assuming an annual interest rate of 10%?

A) $363,636
B) $343,182
C) $192,883
D) $170,271