The Solution to This Problem Requires Time Value of Money

Multiple Choice

The solution to this problem requires time value of money calculations.Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations.
-
Barton Company has just purchased a machine with a cost of $100,000 and signed a note agreeing to pay the manufacturer equal annual amounts of $17,400.If the current rate of interest is 8%,how many equal annual payments will be made?

A) 6
B) 8
C) 10
D) 12