What are the five annual payments

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Reference no: EM131933199

Question: Anderson Manufacturing? Co., a small fabricator of? plastics, needs to purchase an extrusion molding machine for ?$130,000. Kersey will borrow money from a bank at an interest rate of 10?% over five years. Anderson expects its product sales to be slow during the first? year, but to increase subsequently at an annual rate of 8%. Anderson therefore arranges with the bank to pay off the loan on a? "balloon scale," which results in the lowest payment at the end of the first year and each subsequent payment being just 8?% over the previous one. Determine the five annual payments.

What are the five annual payments? Period(N) 1 to 5.

Reference no: EM131933199

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