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Business, 12.02.2020 05:02 lulu3371

Anderson Manufacturing Co., a small fabricator of plastics, needs to purchase an extrusion molding machine for $120,000. Kersey will borrow money from a bank at an interest rate of 14% over five years. Anderson expects its product sales to be slow during the first year, but to increase subsequently at an annual rate of 7%. 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 7% over the previous one. Determine the five annual payments.

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