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5 (10 Points) ANNUAL CASH FLOW ANALYSIS Equipment is being financed for 10 years by XYZ Corp. with monthly payments. The arrangement with the vendor
5 (10 Points) ANNUAL CASH FLOW ANALYSIS Equipment is being financed for 10 years by XYZ Corp. with monthly payments. The arrangement with the vendor worked out is as below. The interest rate is 34 % per month for the first 48 payments and for the remainder of the loan the interest rate would be 1 % per month. The equipment cost $500,000. 4500,000 48 49 50 51 120 5.1. What is the monthly payment for the first 48 months? A) $5275 B) $6350 C) $7233 D) $7892 5.2. Determine the amount of 49-th monthly payment. A) $6235 B) $8231 C) $6865 D) $7568
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