Grant Corporation is looking to purchase a building costing $900,000 by paying $300,000 cash on the purchase date, and agreeing to make payments every three months for the next five years. The first payment is due three months after the purchase date. Grant's incremental borrowing rate is 8%. Each of the payments is closest to:
A)$55,041.
B)$61,112.
C)$36,694.
D)$32,400.

Question

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The Answer of Grant Corporation is looking to purchase a building costing $900,000 by paying $300,000 cash on the purchase date, and agreeing to make payments every three months for the next five years. The first payment is due three months after the purchase date. Grant's incremental borrowing rate is 8%. Each of the payments is closest to:
A)$55,041.
B)$61,112.
C)$36,694.
D)$32,400.

Grant Corporation Is Looking to Purchase a Building Costing $900,000