Question: Best Technologies would like to purchase a machine at a cost of $400,000. The bank is willing to lend 80% of the purchase price at

  1. Best Technologies would like to purchase a machine at a cost of $400,000. The bank is willing to lend 80% of the purchase price at a rate of 6% p.y.c.m. The machine has a life of 10 years. If Best Technologies agrees to pay $2,000 at the end of each month for the life of the machine and a balloon payment at the end of the period, what will be the amount of the balloon payment?

    A.

    $254,448
    B.

    $216,536
    C.

    $192,957
    D.

    $94,950

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