Question

Green Industries purchased a machine from Cyan Corporation on October 1, 2021. In payment for the $145,000 purchase, Green issued a one-year installment note to be paid in equal monthly payments at the end of each month. The payments include interest at the rate of 18%. Monthly installment payments are closest to\

Answer 1

Answer: $13293.59

Step-by-step explanation:

The following information can be deduced from the question:

Number of periods (n) = 12

Interest rate(i) = 18%/12 = 1.5%

Purchase price = $145000

PVA = [1 -(1.015)^-12] / 0.015 = 10.90751

Monthly installments payment = Purchase price / PVA

= $145000 / 10.90751

= $13293.59