Brett purchased a machine for $22,500 for his company. He paid 5.00% of this amount as a down payment and financed the rest at 4.72% compounded quarterly. He paid $1,125 at the end of every quarter to settle the loan. A a. What was the principal portion of payment number 4? Round to the nearest cent b. What was the interest portion of payment number 4?
Brett purchased a machine for $22,500 for his company. He paid 5.00% of this amount as a down payment and financed the rest at 4.72% compounded quarterly. He paid $1,125 at the end of every quarter to settle the loan. A a. What was the principal portion of payment number 4? Round to the nearest cent b. What was the interest portion of payment number 4?
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
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Transcribed Image Text:Brett purchased a machine for $22,500 for his company. He paid 5.00% of this amount
as a down payment and financed the rest at 4.72% compounded quarterly. He paid
$1,125 at the end of every quarter to settle the loan.
a. What was the principal portion of payment number 4?
Round to the nearest cent
b. What was the interest portion of payment number 4?
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