An equipment distributor that sells construction equipment has a promo to attract customers. The equipment can be taken out by the customer at no down payment but the customer will just pay the first amortization (regular payment) during the take out of the equipment. The company charges 18% effective interest and the term is flexible at 1. 2 or 3 years to pay with monthly or quarterly payment. One of the equipment being offered is a dump Mick with a selling price of P 4,000,000.00. a. If a construction firm wants to buy this unit but will pay monthly for 2 years. how much will be the monthly payment? b. If a firm wants to pay quarterly for 3 years. how much will be the quarterly payment? (Draw the Cash flow diagram and solve for each case).
An equipment distributor that sells construction equipment has a promo to attract customers. The equipment can be taken out by the customer at no down payment but the customer will just pay the first amortization (regular payment) during the take out of the equipment. The company charges 18% effective interest and the term is flexible at 1. 2 or 3 years to pay with monthly or quarterly payment. One of the equipment being offered is a dump Mick with a selling price of P 4,000,000.00. a. If a construction firm wants to buy this unit but will pay monthly for 2 years. how much will be the monthly payment? b. If a firm wants to pay quarterly for 3 years. how much will be the quarterly payment? (Draw the
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