Question
2a) A new piece of equipment is financed with end-of-month payments of $1250 for 7 years. At 4.05% p.a. compounded annually, what was the cash
2a) A new piece of equipment is financed with end-of-month payments of $1250 for 7 years. At 4.05% p.a. compounded annually, what was the cash price of the equipment?
b) A new piece of equipment is financed with payments of $7500 at the end of every six months for 39 months. At 10.11% p.a. compounded annually, what was the cash price of the equipment?
c) You have purchased a new 70 in TV for $5560.76. Your loan requires that you make payments every 6 months over the course of 36 months at an interest rate of 2.25% compounded quarterly. What is the amount of each payment?
d) An annuity is set up where payments of $273 are made into a savings account at the end of each month. If interest is 6.14% p.a. compounded annually, calculate the future value of the annuity after 10 years.
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