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Assuming interest is computed at a 10 rate compounded

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On May 1, 2014, a company purchased a new machine that it does not have to pay for until May 1, 2016. The total payment on May 1, 2016 will include both principal and accumulated interest. Assuming interest is computed at a 10% rate compounded annually, the total payment due will be the price of the machine multiplied by what time value of money factor?

Future value of 1.

  1. Future value of an annuity of 1.
  2. Present value of 1.
  3. Present value of an annuity of 1.

Reference no: EM13567717

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