in commodity can be bought in cash for $ 200,000.00. However, the agent allows to purchase the commodity in 9 equal payments, the first being due at the end of 10 year with an interest of 7.50% compounded continuously. a) Find the annual payments b) detemine the compound amount factor of the uniform payment series and th

Principles of Accounting Volume 1
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ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 1EA: Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest...
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A certain commodity can be bought in cash for $ 200,000.00. However, the agent allows to purchase the commodity in 9 equal payments, the first being due at the end of 10 year with an interest of 7.50% compounded continuously.

a) Find the annual payments

b) detemine the compound amount factor of the uniform payment series and the sinking fund factor.

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