A landscaping company buys a new bulldozer for $61,000.00. The company makes a down payment of $15,000.00 and finances the balance at 6.0% API months. The monthly payment is $889.33. A split second after making the 12th payment, the company owner decides to pay the rema balance on the loan. What is the total amount due to pay off the balance? Use the actuarial method. P If you use the Finance Charge Table 11.2, page 632, and the "unearned interest formula", in your textbook to solve this problem, the result will match exactly with one of the answer any of the use a spreadsheet to do the computation, your result will not match exactly with answers, but it will differ only very little (mostly less than $1) from the "correct" answer. O $31,418.37
A landscaping company buys a new bulldozer for $61,000.00. The company makes a down payment of $15,000.00 and finances the balance at 6.0% API months. The monthly payment is $889.33. A split second after making the 12th payment, the company owner decides to pay the rema balance on the loan. What is the total amount due to pay off the balance? Use the actuarial method. P If you use the Finance Charge Table 11.2, page 632, and the "unearned interest formula", in your textbook to solve this problem, the result will match exactly with one of the answer any of the use a spreadsheet to do the computation, your result will not match exactly with answers, but it will differ only very little (mostly less than $1) from the "correct" answer. O $31,418.37
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:QUESTION 12
A landscaping company buys a new bulldozer for $61,000.00.
The company makes a down payment of $15,000.00 and finances the balance at 6.0% APR over 60
months.
The monthly payment is $889.33.
A split second after making the 12th payment, the company owner decides to pay the remaining
balance on the loan.
What is the total amount due to pay off the balance? Use the actuarial method.
If you use the Finance Charge Table 11.2, page 632, and the "unearned interest formula", page 635,
in your textbook to solve this problem, the result will match exactly with one of the answers. If you
use a spreadsheet to do the computation, your result will not match exactly with any of the
answers, but it will differ only very little (mostly less than $1) from the "correct" answer.
O $31,418.37
O $33,772.15
O $37,867.33
O $44,784.81
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education