Potash Corporation financed the purchase of a building by making semiannual payments of $39,000 for the next twenty years, with the first payment due six months from today. The purchase cost of the building is considered to be the present value of those payments. What was the purchase cost of the building to Potash assuming an annual interest rate of 10%?

Answer rating: 100% (QA)

To calculate the purchase cost of the building we need to determine the present value of the se... View the full answer