Saybrook Company purchased a machine on January 2,2014.Under the terms of the purchase agreement,the company is required to make 14 quarterly installment payments of $23,000 each,beginning April 1,2014.Assuming 16 percent interest compounded quarterly,determine the purchase price of the machine.Use future value and/or present value tables in calculating your answer.

Question

Quizplus · Accepted Answer

The Answer of Saybrook Company purchased a machine on January 2,2014.Under the terms of the purchase agreement,the company is required to make 14 quarterly installment payments of $23,000 each,beginning April 1,2014.Assuming 16 percent interest compounded quarterly,determine the purchase price of the machine.Use future value and/or present value tables in calculating your answer.

Saybrook Company Purchased a Machine on January 2,2014