QUESTION 23 Your construction company has purchased a tractor for $130,000. Dete

Question

QUESTION 23 Your construction company has purchased a tractor for $130,000. Determine the required payment per year to completely pay off the tractor in 15 years, assuming an interest rate of 8%. A. $14,690 . $15 184 O C $15,769 D.$16,44.5 QUESTION 24 Alex started his construction company with a loan of $20,000 today at 12% interest rate compounded annually. Five years later, he makes the first payment of S15,000. How much money will he still need to pay after the first payment to pay off the rest of the loan? A. $15,000 B. $20,246 O C. $35,246 D.$50,246

Explanation / Answer

23.

required payment each year

=130000/((1-(1+8%)^(-15))/8%)

=15188, so nearest answer will be 15184

24.

money left for payment=(20000*(1+12%)^5)-15000=20246

the above is answers..

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