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9. An equipment dealer offers to finance a piece of equipment with 48 monthly payments and with the first payment starting in (12 months). The
9. An equipment dealer offers to finance a piece of equipment with 48 monthly payments and with the first payment starting in (12 months). The interest rate quoted to the individual is 2% AR but the cost of debt to the financing company is 7% AR. The seller needs the terms of the contract to generate a present value of $100,000 (at the market rate) if she is to break even. a. Find the price the seller needs to charge the customer to break even
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