Logo
Home Study Material Contact Search
AI Chat FREE
  1. mathematics
  2. statistics
  3. if you are going to buy a new copier for your smal

If you are going to buy a new copier for your small business that costs...

60.1K

Verified Solution

Question

Statistics

image

If you are going to buy a new copier for your small business that costs 12 000 are you better off paying cash for it or making five yearly payments of 3 000 at the end of each year Think about the future value of investing the lump sum of 12 000 versus the value of investing the 3 000 each year in an annuity and consider two cases one where you earn 2 on your investments and one where you earn 9 COL After five years if the 12 000 cash is invested at 2 the total value of the account would be If it is invested at 9 the total value of the account would be If the 3 000 payments are invested at 2 the total value of the account would be If they are invested at 9 the total value of the account would be Therefore at 2 less would be paid by paying cash and at 9 less would be paid by making payments Round to the nearest cent as needed

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Suppose you were given the task of estimating the density of two plant species in a...

Electrical Engineering
1.2K views

TE and TM Modes in rectangular waveguides and define the parameters of rectangular waveguides.

Biology
1.2K views

How much of the sunlight entering the Earth eventually leaves?A. AllB. SomeC. NoneD. Most

Basic Math
1.2K views

Problem 7 20 For the information given state the value of the five remaining tr...

Algebra
1.2K views

1 i 1 2 7 2 2 2 k 21 11 For what value of...

Algebra
1.2K views

segment AC lope of line segment AC cannot be determined because the triangles are not...

Algebra
1.2K views

Which equation has a graph that is a parabola with a vertex at 5 3...

Accounting
1.2K views

During 2016, Sigma Company earned service revenue amounting to $860,000, of which $675,000 was collected...

Finance
1.2K views

2. You are analyzing a zero-coupon bond with a face value for $1,000 maturing in...

Accounting
1.2K views

**Case Study: XYZ Manufacturing Company-Implementing Activity-BasedCosting (ABC)** **Background:** XYZ Manufacturing Company specializes in the production...

Accounting
1.2K views

E8-16 Preparing Cash Budget [LO 8-4] Walter Company has the following information for the month...

Finance
1.2K views

Question 2(5 points) Jack Welch purchased an equipment for $184,800 and it will...