3-13. What uniform annual payment for 30 years is equivalent to spending $10,000 immediately, $10,000 at the end of 10 years, $10,000 at the end of 20 years, and $2,000 a year for 30 years? Assume an interest rate of 9%. (Ans. $3,558.22)

3-13. What uniform annual payment for 30 years is equivalent to spending $10,000 immediately, $10,000 at the end of 10 years, $10,000 at the end of 20 years, and $2,000 a year for 30 years? Assume an interest rate of 9%. (Ans. $3,558.22)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 5Q: If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the...

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Concept explainers

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.

Question

income taxes? (Ans. $91,781)
3-13. What uniform annual payment for 30 years is equivalent to spending
$10,000 immediately, $10,000 at the end of 10 years, $10,000 at the end of 20
years, and $2,000 a year for 30 years? Assume an interest rate of 9%. (Ans.
$3,558.22)

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