# Drilling machine

A manufacturing firm purchased a heavy duty drilling machine. They were given two payment options:
Option 1: Make a payment of $46,000 immediately to settle the invoice for the machine. Option 2: Make a payment of$21,500 immediately and the balance of $23,550 in 3 months to settle the invoice. If money is worth 4.12% compounded quarterly, answer the following: What is the total present value of Option 2? ### Correct answer: a = 45935.8 USD ### Step-by-step explanation: Did you find an error or inaccuracy? Feel free to write us. Thank you! Showing 1 comment: Dr Math From our user: Hi Peter, Thank you for your time, I have checked your answer and it is still showing as wrong. Tips to related online calculators Our percentage calculator will help you quickly calculate various typical tasks with percentages. Do you want to convert time units like minutes to seconds? #### You need to know the following knowledge to solve this word math problem: ## Related math problems and questions: • Saving 9 An amount of$ 2000 is invested at an interest of 5% per month. If $200 is added at the beginning of each successive month but no withdrawals. Give an expression for the value accumulated after n months. After how many months will the amount has accumula • Compound interest 3 After 8 years, what is the total amount of a compound interest investment of$25,000 at 3% interest, compounded quarterly? (interest is now dream - in the year 2019)
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