3. Deontay Jenkins LLC Engineering firm borrowed $100,000 to purchase a new AC unit the building. The annual loan payment is $8,880 at 8% per year for 30 years. The company's CEO decides to make $10,000 annual payments instead, in hopes of payim off the loan sooner. Using the Linear interpolation method, how long will it take (to nearest years and months) to repay the loan using the CEO's decision?
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- Your company is considering purchasing an expensive plece of equipment. The manufacturer of the equipment offers a payment plan to pay $100,000 annually for 4 years. Assuming no other cash flow, the first payment is due at the end of the first year, and an interest rate of 6%, the minimum Present amount of money you will need is most nearly O $370,000 O $380.000 O 390.000 O 5400,000 O 5410.000 O S420.000milgard barbers decides to lease another barbershop for a 5- year period. the has a cash price of $240,000. milgard borrowed money to purchase the shop, it would have had to pay 20% interest read the (use the present value and future value tables, a financial calculator, or a spreadsheet for your calculations. if using present and future value tables or the formula method, use factor amounts rounded to five decimal places. round your final answer to the nearest cent. (click the icon to view the future value of ) (click the icon to view the future value of an ordinary annuity table .) (click the icon to view the future value of an annuity due to table) a. what are the required payments if the lease agreement requires annual payments beginning one year from today? the required payments are $ B. what are the required payments if the lease agreement requires semiannual payments beginning six months from the required payments are. C. what are the required payments if the lease agreement…Q2: An engineer wishes to purchase an $80 000 machine by making a down payment of $20 000 and borrowing the remaining $60 000, which he will repay on a monthly basis over the next 30 years. If the bank charges interest at the rate of 9.5% per year, compounded monthly, how much money must the engineer repay each month? *
- 1. A consulting firm is considering the purchase of a new computer system for their enterprise management needs. A vendor has quoted a purchase price of $240,000. The consulting firm plans to borrow one-fourth of the purchase price from a bank at 8% compounded annually. The loan is to be repaid in equal annual payments over a six year period. The remainder of the purchase price is available through other funding sources (e.g. not a loan or money that must be repaid). The time. computer system is expected to last eight years and has a salvage value of $8,000 at that During the 8-year period, the consultant firm also expects to pay a technician $25,000 per year to maintain the system but will also save an estimated $55,000 per year through increased efficiencies in operations. The consulting firm project manager has determined that a MARR of 12%/year should be used to evaluate this investment project. What is the external rate of return for the investment project? Should the new computer…Your boss has asked you to evaluate the economic viability of refinancing a loan on your plant’s process equipment. The original loan of $500,000 was for six years. The payments are monthly and the nominal interest rate on the current loan is 6% per year. As of the present time, your company has had the loan for 24 months. The new loan would be for the current balance (i.e., the balance at the end of the 24th month on the old loan) with monthly payments at a nominal interest rate of 3% per year for four years. A one-time financing fee for the new loan is $10,000. Your company’s MARR is 12% per year on a nominal basis. Determine if the new loan iseconomically advantageous.You need a quick loan and decide to use the local "payday" loan office. The loan is for $800 and you pay it back 13 days later. You end up paying them back $1025. Assume the company compounds interst on a DAILY basis.. la. What is the effective interst rate per year? 1b. What would you owe if you kept the money for 1 year? please show work on excel
- Two years ago, you purchased a vehicle for $30,000 at an 8% APR. Your loan term was 60 months. The current value of your vehicle is $20,000. If you only made minimum payments for these past two years, how much equity do you have in the vehicle? $589 $14,598 $19,411 $1,231 15,402 $2,537Blackstone Company purchased a new software system costing $35,000. To finance the purchase, Blackstone signed a contract agreeing to pay the cost over the next 8 years, with a payment due every six months; the first payment will be made six months from the date of purchase. Blackstone's usual interest rate is 10%. What is the amount of the payment required (rounded to the nearest dollar)? 's usual 096, What is the amount of the Select one: O a. 16,030 O b. 6,560 O c. 3,229 d. 2,575 e. None of the abovePool-N-Patio World needs to borrow $50,000 to increase its inventory for the upcoming summer season. The owner is confident that he will sell most, if not all, of the new inventory during the summer, so he wishes to borrow the money for only four months. His bank has offered him a simple interest amortized loan at 73% interest. (Round your answers to the nearest 4 cent.) (a) Find the size of the monthly bank payment. Interest Portion Total Payment Balance Due (b) Prepare an amortization schedule for all four months of the loan. Principal Portion A A A Payment Number 0 1 2 3 4 A $ A LA +A $ A A A A A $ +A $ +A
- Sheffield Excavating Inc. is purchasing a bulldozer. The equipment has a price of $93,800. The manufacturer has offered a payment plan that would allow Sheffield to make 10 equal annual payments of $18,700.00, with the first payment due one year after the purchase. How much total interest will Sheffield pay on this payment plan? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Total interest $ Sheffieldcould borrow $93,800 from its bank to finance the purchase at an annual rate of 9%.Click here to view factor tablesShould Sheffield borrow from the bank or use the manufacturer’s payment plan to pay for the equipment? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 7%.) Manufacturer's rate %Vaughn Excavating Inc. is purchasing a bulldozer. The equipment has a price of $97,600. The manufacturer has offered a payment plan that would allow Vaughn to make 10 equal annual payments of $15.883.95, with the first payment due one year after the purchase. x Your answer is incorrect. How much total interest will Vaughn pay on this payment plan? (Round factor values to 5 decimal places, eg 1.25124 and final answer to 0 decimal places, eg. 458.5811 Total interest 501877 Your answer is partially correct. Vaughncould borrow $97,600 from its bank to finance the purchase at an annual rate of 9% Click here to view factor tables Should Vaughn borrow from the bank or use the manufacturer's payment plan to pay for the equipment? (Round factor values to decimal places, s 1.25124 and final answer to O decimal places, eg 7%) 15.00 % Manufacturer's rate from the DaAerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1,000 down and financed the rest, with the agreement to pay nothing for the entire first year and then to pay $576.83 at the end of each month over years 2, 3, and 4 (first payment is in 13th month). a. What nominal interest rate is Aerotron paying on the loan? % b. What effective interest rate are they paying? % Round your answer to 4 decimal places for a and b. The tolerance is ± 0.0005. c. How much of the 14th month's payment is interest? How much is principal? payment interest = $ , and principal = $ d. How much of the 18th month's payment is interest? How much is principal? payment interest = $ , and principal = $ e. How much of the 22nd month's payment is interest? How much is principal? payment interest = $ , and principal = $ Round your answers to the nearest whole dollar for c-e. The tolerance is ± 5.