Present value with periodic

rates.

Sam Hinds, a local dentist, is going to remodel the dental reception area and add two new workstations. He has contacted A-Dec, and the new equipment and cabinetry will cost

What will Sam have to pay for this equipment if the loan calls for

quarterlyquarterly

payments

(44

per year)?

$15 comma 00015,000.

The purchase will be financed with an interest rate of

8.58.5%

loan over

77

years. What will Sam have to pay for this equipment if the loan calls for

quarterlyquarterly

payments

(44

per year) and

weeklyweekly

payments

(5252

per year)? Compare the annual cash outflows of the two payments. Why does the

weeklyweekly

payment plan have less total cash outflow each year?