On January 1, 20A, Ross Company acquired a truck that had a purchase price of $20,000. The seller agreed to allow Ross to pay for the truck over a two-year period at 10% interest with equal payments due at the end of 20A and 20B. What is the amount of each annual payment the company must make (round to the nearest dollar)?
A) $14,151
B) $17,751
C) $11,524
D) $22,267

Question

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The truck is financed with equal payments over two years at 10% interest. Using the formula for an annuity payment, the annual payment is calculated as $11,524.

On January 1, 20A, Ross Company Acquired a Truck That