Question

If you buy a factory for $250,000 and the terms are 20 percent down, the balance to paid off over 30 years at a 12 percent rate of interest on the unpaid balance, what are the 30 equal annual payments.?

Expert Solution

Want to see the full answer?

Check out a sample Q&A here
Blurred answer
Students who’ve seen this question also like:
Corporate Fin Focused Approach
Corporate Fin Focused Approach
5th Edition
ISBN: 9781285660516
Author: EHRHARDT
Publisher: Cengage
Not helpful? See similar books
Corporate Fin Focused Approach
Corporate Fin Focused Approach
Supply Chains And Working Capital Management. 6ST
marketing sidebar icon
Want to see this answer and more?
Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*
*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.

Related Finance Q&A

Find answers to questions asked by students like you.

Q: If you buy a factory for $250,000 20 percent down, 8. and the terms are the balance to be paid off…

A: Present value of an annuity refers to the sum of money which is received today which is worth more…

Q: 8. If you buy a factory for $250,000 and the terms are 20 percent down, the balance to be paid off…

A: The present value of an ordinary annuity is today's value of even cash flows received or paid…

Q: 8. If you buy a factory for $250,000 and the terms are 20 percent down, the balance to be paid off…

A: A series of fixed payments that are paid or received at an equal time interval is term as the…

Q: 8. If you buy a factory for $250,000 and the terms are 20 percent down, the balance to be paid off…

A: Computation:

Q: A company plans to buy new equipment in 25 years. They will start by saving $1,370 at the end of…

A: Saving at the end of year = $ 1370 Annual growth rate = 3.5% Annual interest rate = 15.3% Period =…

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

A: Click to see the answer

Q: Your firm rents office space for P250,000 per year, due at the BEGINNING of each year. If your…

A: Beginning of period payments Rent Payments = 250,000 per year Time Period = 5 years Hurdle Rate =…

Q: Your firm rents office space for P250,000 per year, due at the BEGINNING of each year. If your…

A: The present value of the annuity due is the current worth of a cash flow series starting at the…

Q: You have just borrowed $240,000 and you agree to pay it back over the next 20 years in 20 equal…

A: Details given are : Present value of borrowing = $240000 Time period = 20 years Interest rate = 11%…

Q: To finance the purchase of a new factory recently, you’ve arranged for a 40-year mortgage loan for…

A: Annual percentage rate (APR) refers to the annual cost of funds borrowed. The APR is usually…

Q: A manufacturing firm wishes to give each 80 employees a holiday bonus. How much(P) is needed to…

A: Individuals or companies invest regular amounts in financial instruments to earn interest on the…

Q: The annual income from an apartment house is $33,600. The annual expense is estimated to be $8000.…

A: Return on investment = 6% = 0.06 Initial investment = $349,000 Annual net income = Annual income -…

Q: Choam Inc. owes $16,100 that is due in 1 year. Instead of paying then, Choam is going to make two…

A: Amount due in 1 year = $16100 Interest rate (r) = 3.8% per annum First payment is to be done in 6…

Q: The price for a building was $ 125,000. How many months will it take to pay for the building if $…

A: given, price of building=$125000 advance=$25000 A=$1000 per month rate=9% m=12

Q: An engineering company currently pays $18,175 a quarter for insurance. They pay on the 1st day of…

A: The question is based on the concept of present value of regular payment based on the effective…

Q: An engineering company currently pays $18,175 a quarter for insurance. They pay on the 1st day of…

A: The quarterly interest rate will be the rate with equates the present value of the quarterly…

Q: A building is priced at $300,000. If a buyer makes a down payment of $100,000 and a payment of…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: The annual income from an apartment house is $20,000. The annual expense is estimated to be $2000.…

A: Given:

Q: Suppose you contribute $10 per week ($520 per year) into an interest-bearing account that earns 6% a…

A: Calculation of the funds that must be saved at end of 15 years:- Money that have been saved by…

Q: The VEEtile company aims to have enough money to invest into a new grader equipment in 4 years. If…

A: In case of simple interest, interest will be same for all the 4 years as there is no compounding at…

Q: You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two…

A: The current worth of the cash flows or an asset after discounting is termed as the present value.

Q: The buyer of a lot pays $50,000 cash and $10,000 every month for 10 years. If money is 8% compounded…

A: Present value (PV) is the current value of a future stream of cash flows or money at a specified…

Q: The average age of engineering students at graduation is a little over 23 years. This means that the…

A: A concept through which it is studied that the current worth of money is higher than its future…

Q: The buyer of a lot pays $50,000.00 cash and $10,000.00 every month for 10 years. If money is 8%…

A: Given:

Q: You expect that you will need to replace your furnace in 4 years at a cost of $16,716. How much must…

A: Given months = 30 cost = 16716 APR = 2.91%

Q: An engineering firm can pay for its liability insurance on an annual or monthly basis. If paid…

A: Effective interest rate=1+rnn-1

Q: Zwango Plus Manufacturing expects that fixed costs of keeping its Zephyr Hills Plant operating will…

A: = Initial Amount + AC

Q: An engineer wants to have P100,000 at the end of three years. How much would the engineer have to…

A: Present  value is calculated by discounting the future value with the rate of interest.   Present…

Q: Angelina Jolie wants to buy a new farm equipment costing $300,000 making a down payment of $50,000.…

A: Loan amount (L) = $300000 - $50000 = $250000 r = 20% per annum = 1.667% per month n = 4 years = 48…

Q: Annual maintenance costs for a machine are ₱25,000 for six years. Interest rate is 6%. If…

A: present worth of all the maintenance cost is the discounted cost at the rate of 6%

Q: Annual maintenance costs for a machine are ₱25,000 for six years. Interest rate is 6%. If…

A: Present value (PV), if the stated rates of return are provided, is the current value of a future…

Q: A company plans to buy new equipment in 6 years. They will start by saving $3,091 at the end of this…

A: The given answer is correct

Q: A company plans to buy new equipment in 6 years. They will start by saving $3,091 at the end of this…

A: Saving at the end of year = $ 3091 Annual growth in saving = 14.9% Annual interest rate = 17.8%   To…

Q: A construction firm wishes to give each 80 employees a holiday bonus. How much is needed to invest…

A: Annuity refers to the fixed periodic payments which are paid monthly, quarterly, semi-annually or…

Q: The Aggarwal Corporation needs to save 10 million to retire a 10 million mortage that matures in 10…

A: According to the time value concept, money available today is worth more than the same amount of…

Q: An engineer buys a piece of lot for P250,000 down payment and 10 deferred semi-annual payments of…

A: Annual interest rate = 10% Quarterly interest rate = 10%/4 = 2.5% Down payment = P 250,000 Semi…

Q: A house and lot costing ₱2 million was bought at a down payment of ₱500,000 and ₱1 million after one…

A: Compounding Interest refers to the calculation of interest on the principal amount plus the…

Q: Suppose you buy an appliance costing ​$2350 at a store charging 13​% ​add-on interest, you make a…

A: Computation of principal amount:

Q: A house and lot costing ₱2 million was bought at a down payment of ₱500,000 and ₱1 million after one…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: A house and lot costing ₱2 million was bought at a down payment of ₱500,000 and ₱1 million after one…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two…

A: Given, Interest rate = 9% per annum compounded monthly = 0.75% per month   Option 1 = 66000 each…

Q: A company wants to have $40,000 at the beginning of each 6-month period for the next 4 1/2 years .…

A: Given:

Q: The D.J. Masson Corporation needs to raise $600,000 for 1 year to supply working capital to a new…

A: Given: Discount rate = 2% Full payment to be made in = 70 Number of days in a year = 365

Q: How much will you pay for a $10,000 automobile in 20 years if the infla-tion rate averages 3 percent…

A: Information Provided: Present amount = $10,000 Term = 20 years Inflation rate = 3%

Q: The operating and maintenance expenses on a machine is expected to increase $100 per month on the…

A: Equal series payment is defined as an investment for an equal cash flow regarding an investment…

Q: Annual maintenance cost for a machine is P1500 this year and are estimated to increase 10% each…

A: Click to see the answer

Q: What is the rate of return on an investment of $150,000 if the company expects to earn $12,000…

A: The rate of return earned on the investment can be calculated with the help of RATE function of…

Q: A company that manufactures digital pressure gauges just borrowed $10,000,000 with the understanding…

A: Annual payment (A)= $2,000,000 Number of years (n)= 4 Interest rate (i)= 8% per year How much will…

Q: If a firm borrowed $500,000 at a rate of 10% simple interest with monthly interestpayments and a…

A: Click to see the answer

Q: If you have $10,000 today, and save $12,000 per quarter year at the end of the quarter while earning…

A: In the given question we need to compute the number of quarters required to accumulate $100000 if we…

Knowledge Booster
Finance
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
    Recommended textbooks for you
  • Corporate Fin Focused Approach
    Finance
    ISBN:9781285660516
    Author:EHRHARDT
    Publisher:Cengage
    EBK CONTEMPORARY FINANCIAL MANAGEMENT
    Finance
    ISBN:9781337514835
    Author:MOYER
    Publisher:CENGAGE LEARNING - CONSIGNMENT
    Excel Applications for Accounting Principles
    Accounting
    ISBN:9781111581565
    Author:Gaylord N. Smith
    Publisher:Cengage Learning
  • Principles of Accounting Volume 2
    Accounting
    ISBN:9781947172609
    Author:OpenStax
    Publisher:OpenStax College
    Financial Accounting
    Accounting
    ISBN:9781337272124
    Author:Carl Warren, James M. Reeve, Jonathan Duchac
    Publisher:Cengage Learning
    Financial Accounting Intro Concepts Meth/Uses
    Finance
    ISBN:9781285595047
    Author:Weil
    Publisher:Cengage
  • Corporate Fin Focused Approach
    Finance
    ISBN:9781285660516
    Author:EHRHARDT
    Publisher:Cengage
    EBK CONTEMPORARY FINANCIAL MANAGEMENT
    Finance
    ISBN:9781337514835
    Author:MOYER
    Publisher:CENGAGE LEARNING - CONSIGNMENT
    Excel Applications for Accounting Principles
    Accounting
    ISBN:9781111581565
    Author:Gaylord N. Smith
    Publisher:Cengage Learning
    Principles of Accounting Volume 2
    Accounting
    ISBN:9781947172609
    Author:OpenStax
    Publisher:OpenStax College
    Financial Accounting
    Accounting
    ISBN:9781337272124
    Author:Carl Warren, James M. Reeve, Jonathan Duchac
    Publisher:Cengage Learning
    Financial Accounting Intro Concepts Meth/Uses
    Finance
    ISBN:9781285595047
    Author:Weil
    Publisher:Cengage