Question
A contractor's price for a new building was $55700. Stampede Inc., the buyers of the building, paid $16000 down and financed the balance by making
A contractor's price for a new building was $55700. Stampede Inc., the buyers of the building, paid $16000 down and financed the balance by making equal payments at the end of every six months for 14 years. Interest is 8.9% compounded semi-annually.
a) What is the size of the semi-annual payment?
b) How much will Stampede Inc. owe after 6 years?
c) What is the total cost of the building for Stampede Inc.?
d) What is the total interest included in the payments?
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen and Peter Brewer
14th edition
978-007811100, 78111005, 978-0078111006
