Hi, I keep getting the wrong answer for this question and complicated explanations that don't make sense. Can you please help.

Using the previous table, enter the correct factor for three periods at 5%:

Periodic payment	x	Factor	=	Present value
$6,000	x	0.9090.9522.7233.7912.723	=	$16,338

The controller at Ringer has determined that the company could save $6,000 per year in engineering costs by purchasing a new machine. The new machine would last 12 years and provide the aforementioned annual monetary benefit throughout its entire life. Assuming the interest rate at which Ringer purchases this type of machinery is 9%, what is the maximum amount the company should pay for the machine? $_________ (Hint: This is basically a present value of an ordinary annuity problem as highlighted above.)

Assume that the actual cost of the machine is $50,000. Weighing the present value of the benefits against the cost of the machine, should Ringer purchase this piece of machinery?

The answer is not 53,680 or 53,860

Table 2 - Present Value of an Ordinary Annuity of $1 at Compound Interest Period 5% 6% 7% 8% 9% 10% 11% 12% 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 1.859 1.833 1.808 1.783 1.759 1.736 1.713 1.690 3 2.723 2.673 2.624 2.577 2.531 2.487 2.444 2.402 3.546 3.465 3.387 3.312 3.240 3.170 3.102 3.037 4.329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 5.076 4.917 4.767 4.623 4.486 4.355 4.231 4.111 5.786 5.582 5.389 5.206 5.033 4.868 4.712 4.564 6.463 6.210 5.971 5.747 5.535 5.335 5.146 4.968 7.108 6.802 6.515 6.247 5.995 5.759 5.537 5.328 10 7.722 7.360 7.024 6.710 6.418 6.145 5.889 5.650 11 8.306 7.887 7.499 7.139 6.805 6.495 6.207 5.938 12 8.863 8.384 7.943 7.536 7.161 6.814 6.492 6.194 13 9.394 8.853 8.358 7.904 7.487 7.103 6.750 6.424 14 9.899 9.295 8.745 8.244 7:786 367 6/982 6.628 15 10.380 9.712 9.108 8.559 8.061 7.606 7:191 6.8117 16 10.838 10.106 9.447 8,851 8.313 824 7.379 6.974 17 11.274 10.477 9.763 9.122 8.544 8:022 7:549 17.120 18 11 690 10.828 10.059 9.572 8.756 8,201 7.702 7,250 12.085 11.158 10.336 19.604 8.950 8.365 1 7.839 47.366 20 12.462 .470 10.594 9.818 9.129 8.514 7:963 7.469