The contract for the purchase of a R50 000 factory calls for a cash payment of R15 000. The balance, with interest at 5% p.a. compounded quarterly, will be paid off by a series of 20 equal quarterly instalments, the first of which is due in three and a half years. Find the regular instalment.
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- Grummet Company is acquiring a new wood lathe with a cash purchase price of $80,000. The Wood Master Industries (the manufacturer) has agreed to accept $23,500 at the end of each of the next 4 years. Based on this deal, how much interest will Grummet pay over the life of the loan? A. $94,000 B. $80,000 C. $23,500 D. $14,000A 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 lathe for a machine shop costs P60, 000 if paid in cash, On the installment plan, a purchaser should pay P20, 000 down payment and 10 quarterly instaliments, the due at the end of the first year after purchase. If money is worth 15% compounded quarterly. The corresponding value due at the end of the 1st year after purchase is: A. 9.23787 B. 0.0375 C. 8.212787
- A construction project is to be billed monthly at 4.09% for the first 17 payments, billed at 4.09% compounded quarterly for the next 17 payments and billed at 4.09% compounded semi-annually for the last 17 payments. If each payment has a value of 5,583.79 Pesos. Find the cost if the project is paid full before it starts. OWN WORK PLEASE FOR UPVOTEA firm sells the same material with two separate payment plans.1. According to the 1st payment plan, the payment period is 12 months, each monthly payment is 10.837.000 TL, and an interim payment of 12 million TL is required at the end of the 6th month.2. In the 2nd payment plan, the payment period is 18 months, each monthly payment is 7.965.000 TL and an interim payment of 36 million TL is required at the end of the 12th month. Annual nominal interest rate for both options is 60%. Which payment plan would you recommend? In payments, discrete compound interest is applied.A firm sells the same material with two separate payment plans.1. According to the 1st payment plan, the payment period is 12 months, each monthly payment is 10 837 000 dollars, and an interim payment of 12 million dollars is required at the end of the 6th month.2. In the 2nd payment plan, the payment period is 18 months, each monthly payment is 7 965 000 dollars and an interim payment of 36 million dollars is required at the end of the 12th month. Annual nominal interest rate for both options is 60%. Which payment plan would you recommend? In payments, discrete compound interest is applied.
- to finance the development of new product a company borrowed 26000 at 7% compounded monthly. if loan is to be repaid in equal quaterly payments over eight years and the first payment is due three months after the date of the loan what is the size of the quarterly paymentTo finance the development of a new product, a company borrowed $29,000 at 7% compounded monthly. If the loan is to be repaid in equal quarterly payments over ten years and the first payment is due three months after the date of the loan, what is the size of the quarterly payment? The size of the quarterly payment is $ (Round the final answer to the nearest cent as needed Round all intermediate values to six decimal places as needed)An investment producing cash flows in the amount of $1,200 per month is undertaken for a period of 28 months. The investor pays $24,000 for the investment and the contract stipulates that investment returns must be reported on a basis equivalent with annual compounding. Given that theinvestment is sold after 28 months, what would be the equivalent annual compound rate of interest reported to the investor? What would be the annual rate compounded monthly for this investment?
- 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?Determine the amount of the periodic payments needed To pay off the following purchases. Payments are made at the end of the period. Purchase of an equipment for P1,205. Monthly payments are to made for 1 year with interest at 24% per annum, compounded monthly. Purchase of a machine for P26,565. Quarterly payments are to be made for 4 years with interest at 8% per annum, compounded quarterly. Purchase of equipment for P65,500. Semi-annual payments are to be made for 10 years with interest at 10% per annum, compounded semi-annually.A P150,000 loan is to be paid as follows:P 10,000/month _______ 1st to 10th monthFinal payment _______ 12th month If the annual rate of interest is 12% compounded monthly, find the final payment.a. P 62,299 b. P 50,000 c. P61,634 d. P68,298
