Kingbird Corporation purchased a special tractor on December 31, 2020. The purchase agreement stipulated that Kingbird should pay $21,960 at the time of purchase and $5,430 at the end of each of the next 8 years. The tractor should be recorded on December 31, 2020, at what amount, assuming an appropriate interest rate of 12%?
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
Kingbird Corporation purchased a special tractor on December 31, 2020. The purchase agreement stipulated that Kingbird should pay $21,960 at the time of purchase and $5,430 at the end of each of the next 8 years. The tractor should be recorded on December 31, 2020, at what amount, assuming an appropriate interest rate of 12%?
I got -612501.1859 but it is incorrect
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
