Anderson Manufacturing Co., a small fabricator of plastics, needs to purchase an extrusion molding machine for $120,000. Kersey will borrow money from a bank at an interest rate of 14% over five years. Anderson expects its product sales to be slow during the first year, but to increase subsequently at an annual rate of 7%. Anderson therefore arranges with the bank to pay off the loan on a"balloon scale," which results in the lowest payment at the end of the first year and each subsequent payment being just 7% over the previous one. Determine the five annual payments.

1st   year 30932.55

2nd year 33097.83

3rd  year 35414.68

4th  year 37893.71

5th  year 40546.27

Explanation:

We need to solve for the value of a growing annuity

As the formula give the uture value, we solve for the future value of 120,000 in 5 years:

120,000 x 1.14^5 =  231,049.75

Now we plug the know values in the formula and sovle for the installment

growth rate:  0.07

interest rate0.14

time = n=       5

FV =  231,049.75

C = 30932.55

Now we multiply these payment by the grow rate per annum to get hte five of it

30,932.55 x 1.07 = 33097.83

33097.83 x 1.07 = 35414.68

35414.68 x 1.07 = 37893.71

37893.71 x 1.07 = 40546.27

it is d i just took the test

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those r all of them i believe