Solved: Assuming interest at a 10 rate the cost of the machine, Macroeconomics

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Assuming interest at a 10 rate the cost of the machine

On November 1, Year 1, a company purchased a new machine. The machine does not have to be paid for until November 1, Year 3. The total payment on November 1, Year 3, will include both principal and interest. Assuming interest at a 10% rate, the cost of the machine would be the total payment multiplied by what time value of money concept?

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Macroeconomics: Assuming interest at a 10 rate the cost of the machine

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