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could you please fill in the blanks and answer number 5 4. A company is buying a new machine for $100,000. Bank credit is used
could you please fill in the blanks and answer number 5
4. A company is buying a new machine for $100,000. Bank credit is used to finance the entire amount at rate of son per war. (Namely, the interest rate is 10% per wear on the unpaid balance bakiyel of principal The company repay the debt in three years. Please fill in the tables below according to three different payment plans a PLANS PLAN 1. Pay interest due at end of each year and principle at end of fourth year EOY Balance Interest for interest Principle Total paid back Period paid hack 0 $100,000.00 1 50.00 2 $0.00 50.00 TOTAL AMOUNT PAID BACK a GEN 200 Assignment Time Value of Money bPLAN 2 PLAN 2: Pay principle and interest as a lump sum at end of fourth year FOY Balance Interest for Interest Principle Total paid back Period paid back O $100,000.00 1 $0.00 50,00 2 $0.00 $0.00 3 50.00 TOTAL AMOUNT PAID BACK CPLAN 3 PLAN 3: Pay interest due at end of each year PLUS $25,000 principle payment at EOY 1,2,3 EOY Balance Interest for Interest Principle Total paid back Period paid back 0 $100,000.00 1 525,000.00 2 $25,000.00 3 $0.00 TOTAL AMOUNT PAID BACK: 5. Which payment plan in Problem 4 do you choose? WHY Step by Step Solution
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