Question
Asked Jan 23, 2019

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.?

check_circleExpert Solution
Step 1

Purchase consideration for the facor, S = $ 250,000

Down payment = 20%

Yoour own contribution = Down payment = 20% x S = 20% x 250,000 = $ 50,000

Step 2

Mortgage amount, M = Purchase consideration - Down payment = S - 50,000 = 250,000 - 50,000 = $ 200,000

Step 3

Terms and conditions of mortgage:

  1. Frequency: Annual payments
  2. Interest rat...

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