Question
A Toyota dealership owed a manufacturer $12000 on a date 5 months ago and another $17000 on a date 5 months from now. The Toyota
A Toyota dealership owed a manufacturer $12000 on a date 5 months ago and another $17000 on a date 5 months from now. The Toyota dealership is proposing to pay $17000 today and the balance in 9 months, when it will receive payment on a major sale to the provincial government. The manufacturer requires 11% simple interest on overdue accounts.
- What is the value of the first scheduled (and missed) payment 9 months from now?
- What is the value of the second scheduled payment 9 months from now?
- What is the total amount owing 9 months from now?
- What is the value of the proposed repayment today 9 months from now?
- What is the final proposed repayment owed to the manufacturer 9 months from now?
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ISE Introductory Financial Accounting For Business
Authors: Thomas P. Edmonds, Christopher Edmonds
2nd Edition
1260575306, 9781260575309
