On January 1, 2010, Steelton Company completed arrangements to purchase a new piece of equipment.The agreement calls for equal annual payments on January 1 of each year for six years.The first payment of $7, 500 is to be made on January 1, 2010.The implied interest rate is 12%.
Required:
Calculate the cost of the equipment to Steelton Company.

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The Answer of On January 1, 2010, Steelton Company completed arrangements to purchase a new piece of equipment.The agreement calls for equal annual payments on January 1 of each year for six years.The first payment of $7, 500 is to be made on January 1, 2010.The implied interest rate is 12%.
Required:
Calculate the cost of the equipment to Steelton Company.

On January 1, 2010, Steelton Company Completed Arrangements to Purchase