While reading a recent issue of Fitness & Health, a trade journal, Brian Wilson noticed an ad for equipment he had been seeking for use in his business. The ad offered exercise equipment under the following terms:

Model AB 45220

$204,000 zero-interest loan

Quarterly payments of $17,000 for only 3 years

The ad captured Wilson's attention, in part, because he had recently been concerned that the interest charges incurred by his business were getting out of line. The price, though, was somewhat higher than prices for this model he had seen elsewhere.

Advise Mr. Wilson on the purchase he is considering.