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Business, 19.02.2020 03:23 stormserena

Anderson Manufacturing Co., a small fabricator of plastics, needs to purchase an extrusion molding machine for $150,000. They will borrow money from the bank at 7% interest over five years. Since they expect sales to be slow during the first year, but to increases at an annual rate of 10% a year, the company arranges with the bank to pay off the loan using a balloon scale" which results in the lowest payment at the end of the first year, and each subsequent payment will be 10% higher than the previous payment, what is the size of the LAST payment on the loan? a. $44,435 b. $30,350 c. $36,724 d. $40,396

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