You are purchasing a new combine from a local dealer and plan on financing the purchase through the dealer's financing subsidiary. The list price is $425,000 and, since you have purchased equipment from the dealer in the past, you are receiving a 5 percent 'repeat business' discount off the list price. You are making a down payment of 14 percent of the final purchase price and you will finance the remaining amount. Your marginal tax rate is 20 percent. The loan terms include

: a contract interest rate of 8.00 percent,

a 7-year loan term,

semi-annual payments, and

an origination fee equal to 3.00 percent of the amount financed.

Question 6

Based on the total obligation, what is the dollar amount of your periodic payment? This value is central to determining your cost of capital on this loan. Do not report this value as a negative number when answering this question.