A contractors price for a new building was $96 000. Slade Inc., the buyers of the building,

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A contractor’s price for a new building was $96 000. Slade Inc., the buyers of the building, paid $12 000 down and financed the balance by making equal payments at the end of every 6 months for 12 years. Interest is 7.3% compounded semi- annually.
(a) What is the size of the semi-annual payment?
(b) For the first payment period, how much interest is paid, how much of the principal is repaid, and what is the loan balance?
(c) For the second payment period, how much interest is paid, how much of the principal is repaid, and what is the loan balance?
(d) What is the total cost of the building for Slade Inc.?
(e) What is the total interest included in the payments?
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Related Book For  book-img-for-question

Contemporary Business Mathematics with Canadian Applications

ISBN: 978-0133052312

10th edition

Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs

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