question archive HiTek Manufacturing is purchasing a large tract of land for a new facility
HiTek Manufacturing is purchasing a large tract of land for a new facility
Subject:EconomicsPrice:2.87 Bought7
HiTek Manufacturing is purchasing a large tract of land for a new facility. Its loan is for $3 million, and
it will be paid off in 15 equal annual payments. If the interest rate is 10%, how much is each payment?
it will be paid off in 15 equal annual payments. If the interest rate is 10%, how much is each payment?
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Answer:
Total amount to be paid,
A = 3 * (1 + 0.1/100 )^15
A = $ 3.045 million
Thus, each payment = Amount/15 = $ 0.203 million
