9. If you buy a factory for $250,000 and the terms are 20 percent down, the balance to be paid off over 30 years at a 12 percent rate of interest on the unpaid balance, what are the 30 equal annual payments?

Step-by-step explanation:

Future Value of Annuities

We can define an annuity as a series of periodic payments that are received at a future date.

The present value of the annuities is the financial sum of them, including the interest paid per period. The equation to compute the present value PV is

Where

P is the value of the annual payments

i is the interest rate

n is the number of years to pay the balance

Solving the above equation for P

We have the following data

PV is the balance to be paid off, and is the value of the factory minus the 20 percent down as stated in the terms, thus

Computing P

to determine the unit cost your would divide the total cost by the number sold.

7 bagels for $4.41       $4.41/7 = $.63 each at fresh side

5 bagels for $3.60         $3.60/5 = $.72 each at value mart

the answer is 1 becuz if it were 1.0 that would rip apart the entire so ya. : )

~potato.

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