A company has just purchased a machine with a cost of $79,994, and signed anote to pay the manufacturer equal semi-annual amounts of $9,378. If thecurrent rate of interest is 6%, how many equal payments will be made?Select one:O a. 5O b. 6O C. 8O d. 10O e. 12

Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Answered: A company has just purchased a machine…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A car is to be purchased in monthly payments of P17,000 for 4 years starting at the end of 4 months. How much is the fair market value of the car if the interest rate used is 12% converted monthly and down payment is 65,000? __13. How many artificial payments is given? A. 3 B. 4 C. 7 D.8
A company buys a machine for $18,000, which it agrees to pay for in five equal annual payments, beginning one year after the date of purchase, at an annual interest rate of 7%. Immediately after the second payment, the terms of the agreement are changed to allow the balance due to be paid off in a single payment the next year. What is the final single payment? Solution: 1. Draw the CFD by yourself; 2. First, calculate annual payment amount for the first 2 years: O A= + 7%, • )=18000x =$ o The final payment is the • worth of the : unpaid payments. 3. Second, Calculate the single payment amount due at the end of the 3rd year: F=S
One latest CCTV is selling Rm8000 cash can purchase for 25% down and 24 monthly payment at 8% per annum on the original balance. Find the outstanding balance immediately after tenth Payment using rule 78
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A leasing contract calls for an immediate payment of $108,000 and nine subsequent $108,000 semiannual payments at six-month intervals. What is the PV of these payments if the annual discount rate is 12%? (Hint: First find the semiannual rate that is equivalent to the annual rate.) Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
A construction company plans to accelerate the payments on an equipment loan as production increases. The initial payment is $10,000 per year and the plan is to increase the payment, beginning in year 2, by an additional $1,000 each year through year 10. Determine the equivalent annual payment if the loan interest rate is 12%. Select one: O a. $13,585 Ob. $12,650 Oc. $18,650 O d. $15,485 Next page GRO3-07.06.2021 Time:14.30 Jump to... u Rabiu (Log out) N 204 14:43 AK A O 4x O ENG 24/06/2021
[Use BA II PLUS Calculator] *Must first solve for time value* TNT Construction borrowed $150,000 at 7.26% compounded annually and signed a contract with the provision to pay $9,000 at the end of every 3 months. How much principal did TNT Construction repay during the final year of the contract? Rounded to the nearest hundred dollars. A) $34,500 B) $28,800 C) $42,900 D) $62,400
What is the equivalent annual cost in years 1 through 10.00 of a contract that has a first cost of $61,000 in year O and annual costs of $16,000 in years 3 through 10.00? Use an interest rate of 12.00% per year. (Round the final answer to three decimal places.) The equivalent annual cost is determined to be $ 42958 X

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A company has just purchased a machine with a cost of $79,994, and signed a note to pay the manufacturer equal semi-annual amounts of $9,378. If the current rate of interest is 6%, how many equal payments will be made? Select one: O a. 5 O b. 6 O C. 8 O d. 10 O e. 12