Your company has a $800,000. loan for a new plasma cutting machine. The interest rate for...

Your company has a $800,000. loan for a new plasma cutting machine. The interest rate for this loan is 5% per year compounded annually. Your company will make $75,000 payment at the end of each year, starting the end of this year. How many payments (years) will the loan of $800,000. be paid off?

a- 14

b- 15

c- 16

d- 17

Solutions

Expert Solution

Borrowed amount = $ 800,000

Interest rate = 5%

Annual payment = $ 75,000

Correct answer is 17.14.

Rahul Sunny answered 1 year ago

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