Question
Please show all work on paper. Thanks Potter Co. is contemplating the purchase of a new piece of equipment with a purchase price of $500,000.
Please show all work on paper. Thanks
Potter Co. is contemplating the purchase of a new piece of equipment with a purchase price of $500,000. It plans to make a 10% down payment and will receive a loan for 25 years at 10% for the rest. The annual payment required is
a. $18,000
b. $49,576
c. $45,000
d. $55,084
On November 21, 20X1, Terry invests $230,000 in an insurance policy that earns 6% compounded annually. Terry will receive annual payments beginning on November 21, 20X2. What will be the amounts of the 15 equal annual receipts?
a. 24,744.54
b. 23,681.43
c. 2,233,817.50
d. None of the above
Frieda plans to buy an expensive piece of artwork. To afford it, she will deposit $14,000 into an investment account for four years. The account compounds semiannually, and the interest rate is 4%. What amount will she pay for the artwork when she purchases it?
a. 16,403.24
b. 120,161.58
c. 16,731.26
d. None of the above
Walter buys a boat on January 1, 2020, promising to pay semiannual installments of $3,000 starting January 1, 2020 for five years. The interest rate is 6%. How much is Walter paying for the boat?
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