Answered: a print is bought for 60 monthly…

a print is bought for 60 monthly payments of $80. What is the equivalent cash price if the rate is 18% compounded monthly and the first payment is made one month after the purchase?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...

See similar textbooks

Related questions

Q: A year-end bonus of $20,000 will generate how much money at the beginning of each month for the next…

A: Bonus amount (PV) = $20,000 Interest rate (r) = 6.21% Number of compounding per year (m) = 12 Number…

Q: ou are comparing two annuities. Annity ay $100 at the end of each month for 5 rs. Annuit B pays $100…

A: There are two types of annuities one at the beginning of period and one at the end of period.

Q: monthly payment amount be

A: An annuity is the regular payment of an amount at an equal interval. It is a payment of a fixed…

Q: Suppose that 15 monthly payments of 100 each are followed by 10 monthly payments of 150 each. The…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: 0 down payment and 10 quarterly instaliments, the due at the end of the first year after purchase.…

A: The discounting formula is one plus discount rate divided by a number of year's whole raise to the…

Q: heds R Us sells $900 sheds on a monthly payment plan over 4 years. a. If the interest rate is 2% per…

A: Given information: Present Value : $900 Time period : 4 years The monthly payment can be computed in…

Q: A car loan requires 30 monthly payments of $199.00 starting today. At annual rate of 12 percent…

A: Loan (mortgage) amortization schedule refers to a schedule which is prepared to shows the periodic…

Q: If a 6-month T-Bill with a face value of $100 is purchased at a 8% annual discount, the buyer will…

A: Given information in question 6 month T bill Value at maturity = $100 Discount rate annual = 8%…

Q: One building was priced at $ 125,000 . If you advance $ 25,000 and every month after that If $ 1,000…

Q: A house costs $144,000. It is to be paid off in exactly ten years, with monthly payments of…

A: The Annual Percentage Rate(APR) of the loan can be calculated using the RATE function in Excel.

Q: house costs $350,000. You pay a 15% down payment and mortise the rest with equal monthly payments…

A: Given: Cost of house = $350,000 Down payment = 15% Years = 20 years Interest rate = 8.4%

Q: The total purchase price of a new home entertainment system is $14,260. If the down payment is $2900…

A: Value of system = $14,260 Down payment = $2900 Loan amount (P) = $14,260 - $2,900 = $11,360 Monthly…

Q: The cash price of a machine tool is $12,500. The dealer is willing to accept a $3500 down payment…

A: The real interest that an investor earns on the investment and a borrower pays on loan after…

Q: Please use excel if possible. A stamping machine is priced at $48,000. If a payment of $1,500 is…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: If $1 million face amount of commercial paper(270 day paper) is sold for $982,500, what is the…

A: Calculating the value of simple rate of interest paid on commercial paper. We have,Face value of…

Q: A year-end bonus of $23,000 will generate how much money at the beginning of each month for the next…

A: Given data; year end bonus = $23,000 interest rate = 6.33% compounded monthly number of payments =…

Q: A car loan requires 30 monthly payments of $199.00, starting today. At an annual rate of 12 percent…

A: In the given question we require to calculate the amount of money lent from following details:…

Q: If the duration is 4 month and the interest rate is 1 percent per month. The retainage is for the…

A: Time value tells that money received today has more value than that of receiving the exact value…

Q: A payday loan company charges a $60 fee for a $450 payday loan that will be repaid in 10 days.…

A: Equivalent annual interest rate = fees changes/(Loan amount*number of days of loan/365)

Q: A ten-bagger concrete mixer can be purchased with a down payment of P18,000 and equal installments…

A: Value of loan is nothing but the present value of annuity, where the cashflows are the payments of…

Q: Find the cash value of a sala set that can be bought for 2,500 down payment and 288 a month for 36…

A: Cash value =loan amount +down payment We need to use present value of annuity formula to calculate…

Q: A car can be purchased with monthly installments of 8,500 and a down-payment of 115,000 for 48…

A: Monthly installment (M) = 8500 Down payment (D) = 115000 n = 48 months r = 12% per annum = 1% per…

Q: A building is priced at $100,000. If a downpayment of $30,000 is made, an a payment of $1,000 every…

A: The number of Monthly Payments required can be calculated with the help of NPER function of Excel.…

Q: A ten-bagger concrete mixer can be purchased with a down payment of P18,000 and equal installments…

A: The equivalent cash price of mixer is the sum of down payment and present value of annuity.

Q: London Motors will sell a $16,949 car for $335 per month for 60 months. What is the interest rate?

A: We use Rate function to calculate interest rate

Q: You purchase a TIP note with an original principal amount of $1,.000,000 and a 9 percent annual…

A: Original Principal Amount = $1,000,000 Annual coupon Rate = 9% Inflation over the first six months =…

Q: If you buy a computer directly from the manufacturer for $2,509 and agree to repay it in 60 equal…

A: This is the case of present value of annuity. Annuity is equal stream of cashflow at regular…

Q: A service car whose cash price was ₱ 540,000 was bought with a down payment of ₱ 162,000 and monthly…

A: Annuity is a payment made in a fixed interval into a deposit or annual payment made for discharge of…

Q: A house that sells for P900,000 can be purchased under terms requiring 100 monthly payments. Assume…

A: Given that;Present value is P900,000Number of periods is 100

Q: A new furniture set costs $ 2100. If you make a down payment of $ 300 and finance the rest at a rate…

A: In this question the monthly payment is to be find for the loan. Loan can be calculated by deducting…

Q: A car valued at $11,400 can be purchased for 10% down and end-of-month payments of $286.21 for…

A: The nominal interest rate, also known as an Annualized Percentage Rate or APR, is calculated by…

Q: client at ZBX Fin Planning currently has $95,000 in their retirement account that is expected to…

A: Future value of money increases with increase in time and more deposit being made and more interest…

Q: Forty monthly payments of $200 apiece are needed to repay a loan for which interest charges are 12%…

A: Monthly Payment of $200 Interest rate is 12% Compounded monthly Time period is 40months To Find:…

Q: Stereo Inc. sells a stereo system for $400 down and monthly payments of $80 for the next 5 years. If…

A: The cost of an asset purchased on loan is calculated as the present value of the periodic payment.…

Q: An air conditioner is for sale at P20,000 in cash or on terms, P1,650 each month for the next 18…

A: Given, The sale price is P20,000. Payment is P1650 for each month is 6% compounded monthly Number…

Q: Find the present value of a series of 15 monthly payments that start with $5,000 at the end of a…

A: Discount rate is 30% nominal monthly Monthly rate is 30%12=2.5% Total number of payments are 15…

Q: A payday loan company charges a $45 fee for a $550 payday loan that will be repaid in 18 days.…

A: In this question we need to compute the equivalent annual interest rate.

Q: A year-end bonus of $26,000 will generate how much money at the beginning of each month for the next…

A: Bonus amount (PV) = $26000 Interest rate = 6.36% Monthly interest rate (r) = 6.36%/12 = 0.53% Number…

Q: The total purchase price of a new home entertainment system is $14,260. If the down payment is…

A: Monthly paymnet = ( Amount financed + Overall Interest ) / Duration

Q: The Bourbon Street Journal costs $625, payable now, for a 3-year subscription. The newspaper is…

A: Given information: Nominal annual interest rate : 8.5% Number of days the Journal is published : 252…

Q: Merchandise is received for $25,000 now and $50,000 in 6 months. If $10,000 is paid within a month,…

A: Solution:- Balance due in three months means the value outstanding at third period.

Q: A house costs $148,000. It is to be paid off in exactly ten years, with monthly payments of…

A: Following details are given in the question: Cost of House (Present Value) = $148000 Monthly payment…

Q: A machine can be bought with an initial payment of $7,000 and equal installments of $500 each paid…

A: The question gives the following information: Installment 500 Period 12 Rate 11%

Q: A scheduled payment of $3,500 due in one year is to be replaced with two payments: the first due in…

A: Scheduled payment in 1 year (12 months) (X) = $3500 Replacement payment 1 = R1 in 9 months…

Question

a print is bought for 60 monthly payments of $80. What is the equivalent cash price if the rate is 18% compounded monthly and the first payment is made one month after the purchase?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase, and 5% in the second month following the purchase. What are the cash payments if it made the following purchases in 2018?
If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
Every 15 days a company receives P10,000 worth of raw materials from its suppliers. The credit terms for these purchases are 2/15, net 30, and payment is made on the 30th day after each delivery. Thus, the company is considering a 1-year bank loan for P9,800 (98% of the invoice amount). If the effective annual interest rate on this loan is 12%, what will be the net peso savings over the year by borrowing and then taking the discount on the materials?
A ten-bagger concrete mixer can be purchased with a down payment of P18,000 and equal installments of P1200 each paid at the end of the month for the next 14 months. If money is worth 15% compounded monthly, determine the equivalent cash price of the mixer.
A total of $50,000 is borrowed and repaid with 60 monthly payments, with the first payment occurring one month after receipt of the $50,000. The stated interest rate is 6% compounded quarterly. What monthly payment is required?
The maker of cardboard boxes leases a warehouse and pays $5,000 at the beginning of each month for 5 years. If interest rates are 2.75% compounded monthly, what is the present value (in dollars) of the payments? (Round vour answer to the nearest cent.)
house costs $350,000. You pay a 15% down payment and mortise the rest with equal monthly payments over the next 20 years. a. If you pay 8.4% interest compounded monthly, what is your monthly payment?
One building was priced at $ 125,000 . If you advance $ 25,000 and every month after thatIf $ 1,000 is paid, how many months will the payment for the building take? Monthly compound interesttake the rate as 9%.
Find the present value of a series of 15 monthly payments that start with $5,000 at the end of a month and from then on each payment is equal to 3/4 of the total accumulated up to that moment, before the corresponding payment. Discount with a rate of 30% nominal monthly.
The company sells products to a customer for $60,000 and will receive $15,000 at the end of the second to fifth years. The market interest rate is 6%. Please calculate the present value of the receivable (compounding annually and rounded to the nearest dollar).
A house that sells for P900,000 can be purchased under terms requiring 100 monthly payments. Assume that the first payment begins now and the interest rate is 12% compounded monthly. What is the size of each monthly payment?
The maker of cardboard boxes leases a warehouse and pays $5,000 at the beginning of each month for 5 years. If interest rates are 2.75% compounded monthly, what is the present value (in dollars) of the payments?