Frankie's Internet Café, a start up business purchased 50 personal computers in installment plan with a $50,000.00 down payment and 12 monthly payments of $162,500.00 for the remaining balance of $1,450,000.00. 1. What is the installment price of the 50 personal computers? 2.How much interest rate was imputed if the cash price of the 50 personal computers is $1,500,000.00? 3.How much is the interest that the business paid per month?
Frankie's Internet Café, a start up business purchased 50 personal computers in installment plan with a $50,000.00 down payment and 12 monthly payments of $162,500.00 for the remaining balance of $1,450,000.00. 1. What is the installment price of the 50 personal computers? 2.How much interest rate was imputed if the cash price of the 50 personal computers is $1,500,000.00? 3.How much is the interest that the business paid per month?
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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Frankie's Internet Café, a start up business purchased 50 personal computers in installment plan with a $50,000.00 down payment and 12 monthly payments of $162,500.00 for the remaining balance of $1,450,000.00.
1. What is the installment price of the 50 personal computers?
2.How much interest rate was imputed if the cash price of the 50 personal computers is $1,500,000.00?
3.How much is the interest that the business paid per month?
4.How much from the principal loan was deducted per month?
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