February 1, Mosbius Designs needs to purchase some office equipment. The company is short of cash and expects to be short for several months. The treasurer has said that he could pay for the equipment in payments occurring every two months beginning on April 1 and ending on December 1. The first payment will be $80, and payments will be $87 more every two months. For example, the payment on June 1 will be $80 + $87. A local office supply firm will
On February 1, Mosbius Designs needs to purchase some office equipment. The company is short of cash and expects to be short for several months. The treasurer has said that he could pay for the equipment in payments occurring every two months beginning on April 1 and ending on December 1. The first payment will be $80, and payments will be $87 more every two months. For example, the payment on June 1 will be $80 + $87.
A local office supply firm will agree to sell the equipment, Miro, now and accept payment according to the treasurer's schedule. If interest will be charged at 12% annually, compounded every 2 months, how much office equipment can the Miro Company buy now? What is the present worth of the payment schedule? Round your answer to two (2) decimal places.
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