# 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: Pay $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?

Option 1: Make a payment of $46,000 immediately to settle the invoice for the machine.

Option 2: Pay $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:

Tips for 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?

Do you want to convert time units like minutes to seconds?

### You need to know the following knowledge to solve this word math problem:

### Units of physical quantities:

### Grade of the word problem:

## Related math problems and questions:

- Edmond

Edmond Santos borrowed USD 20,000 for 18 months at 6 1/2 % per year. Find the APR (Annual Percentage Rate) if he repaid the loan monthly. The answer is: Note: APR is expressed as a percentage representing the actual yearly cost of funds over a loan term. - Dream home

You finally found your dream home. It sells for $120,000 and can be purchased by paying 10% down and financing the balance at an annual rate of 9.6% compounded monthly. a) How much are your payments if you pay monthly for 30 years? b) Determine how much w - Retirement annuity

How much will it cost to purchase a two-level retirement annuity that will pay $2000 at the end of every month for the first ten years and $3000 per month for the next 15 years? Assume that the payment represents a rate of return to the person receiving t - Calculate 30461

Mrs. Zdena took over the ordered goods worth 5000 €. She did not pay the invoice by the required date of 31.5.2019. Interest on arrears is 5.5% per annum. Calculate the payment as of 31.8.2019.

- Repayments 78744

Mrs. Kováčová borrowed a washing machine worth €810. Monthly repayments of €90. She has already repaid €450. How many more months will he pay? - Washing machine

We pay an advance payment for it in the amount of 1/5 of the total price of the washing machine and then installments in the total amount of 320 €? How much did the washing machine cost? - Present value

A bank loans a family $90,000 at a 4.5% annual interest rate to purchase a house. The family agrees to pay the loan off by making monthly payments over 15 years. How much should the monthly payment be in order to pay off the debt in 15 years?