On January 1, 2014, Jefferson 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, 2014. The interest rate is 12%.
Required:
Calculate the cost of the equipment to Jefferson Company.

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The Answer of On January 1, 2014, Jefferson 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, 2014. The interest rate is 12%.
Required:
Calculate the cost of the equipment to Jefferson Company.

On January 1, 2014, Jefferson Company Completed Arrangements to Purchase