A machine is purchased by making payments of $5000 at the beginning of each of the next five years The interest rate was 10%. The future value of an ordinary annuity of 1 for five periods is 6.10510. The present value of an ordinary annuity of 1 for five periods is 3.79079. What was the most of the machine?
5000 x 3.79079 =18954
Is this correct?