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Marks 1) A contractor's price for a new house was $95,300.00. Vancouver Inc., the buyers of the house, paid $21,000.00 down and financed the balance
Marks 1) A contractor's price for a new house was $95,300.00. Vancouver Inc., the buyers of the house, paid $21,000.00 down and financed the balance by making equal payments at the end of every six months for 12 years. Interest is 5% compounded semi-annually. a) What is the size of the semi-annual payment? b) How much will Vancouver Inc. owe after 5 years? c) What is the total cost of the building for Vancouver Inc.? What is the total payment of Vancouver Inc.? d) What is the total interest included in the payments?
Marks
1) A contractor's price for a new house was $95,300.00. Vancouver Inc., the buyers of the house,
paid $21,000.00 down and financed the balance by making equal payments at the end of every
six months for 12 years. Interest is 5% compounded semi-annually.
a) What is the size of the semi-annual payment?
b) How much will Vancouver Inc. owe after 5 years?
c) What is the total cost of the building for Vancouver Inc.?
What is the total payment of Vancouver Inc.?
d) What is the total interest included in the payments?
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Financial Accounting and Reporting a Global Perspective
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
4th edition
978-1408076866
