Problem
Kersey 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 9% over five years. Kersey expects its product sales to be slow during the first year, but to increase subsequently at an annual rate of 10%. Kersey 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 10% over the previous one. Determine the five annual payments.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.