Buffalo Inc, developed a new sales gimmick to help sell its inventory of new automobiles. Because many new car buyers need financing, Buffalo offered a low downpayment and low car payments for the first year after purchase. It believes that this promotion will bring in some new buyers. On January 1, 2025, a customer purchased a new $37,800 automobile, making a downpayment of $1,560. The customer signed a note indicating that the annual rate of interest would be 12% and that quarterly payments would be mad over 3 years. For the first year, Buffalo required a $400 quarterly payment to be made on April 1, July 1. October 1, and January 1, 2026. After this one-year period, the customer was required to make regular quarterly payments that would pay off the loan as of January 1, 2028. Click here to view factor tables (a) Your answer is partially correct. Prepare a note amortization schedule for the first year. (Round answers to O decimal places, eg. 38.548) Date 1/1/25 $ Cash Paid Interest Expense Discount Amortized Carry Value Nob
Buffalo Inc, developed a new sales gimmick to help sell its inventory of new automobiles. Because many new car buyers need financing, Buffalo offered a low downpayment and low car payments for the first year after purchase. It believes that this promotion will bring in some new buyers. On January 1, 2025, a customer purchased a new $37,800 automobile, making a downpayment of $1,560. The customer signed a note indicating that the annual rate of interest would be 12% and that quarterly payments would be mad over 3 years. For the first year, Buffalo required a $400 quarterly payment to be made on April 1, July 1. October 1, and January 1, 2026. After this one-year period, the customer was required to make regular quarterly payments that would pay off the loan as of January 1, 2028. Click here to view factor tables (a) Your answer is partially correct. Prepare a note amortization schedule for the first year. (Round answers to O decimal places, eg. 38.548) Date 1/1/25 $ Cash Paid Interest Expense Discount Amortized Carry Value Nob
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Buffalo Inc, developed a new sales gimmick to help sell its inventory of new automobiles. Because many new car buyers need
financing, Buffalo offered a low downpayment and low car payments for the first year after purchase. It believes that this promotion
will bring in some new buyers.
On January 1, 2025, a customer purchased a new $37,800 automobile, making a downpayment of $1,560. The customer signed a note
indicating that the annual rate of interest would be 12% and that quarterly payments would be mad over 3 years. For the first year,
Buffalo required a $400 quarterly payment to be made on April 1, July 1, October 1, and January 1, 2026. After this one-year period,
the customer was required to make regular quarterly payments that would pay off the loan as of January 1, 2028.
Click here to view factor tables.
(a)
Your answer is partially correct,
Prepare a note amortization schedule for the first year. (Round answers to 0 decimal places, eg 38,548)
Date
1/1/25
$
Cash
Paid
Interest
Expense
Discount
Amortized
Carry
Value
Nob
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