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Tan Company purchased a large server for $29,000. The company paid 30% of the value as a down-payment and received a loan for the balance at 8.30% compounded monthly. The loan has a term of 3 years and Tan Company had to make month-end payments until the loan was settled. a. Calculate the size of the month

Tan Company purchased a large server for $29,000. The company paid 30% of the value as a down-payment and received a loan for the balance at 8.30% compounded monthly. The loan has a term of 3 years and Tan Company had to make month-end payments until the loan was settled. a. Calculate the size of the month

Essentials Of Investments
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
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Tan Company purchased a large server for $29,000. The company paid 30% of the value as a down-payment and received a loan for the balance at 8.30% compounded monthly. The loan has a term of 3 years and Tan Company had to make month-end payments until the loan was settled. a. Calculate the size of the month-end payments. O $912.77 O $638.94 O $278.83 O $623.73 b. What was the total amount paid to settle the loan? O $32,859.72 O $9,920.88 O $23,001.89 O $22,454.28 c. Calculate the total amount of interest paid throughout the term of the loan. O $2,701.89 O $12,559.72 O $10,404.12 O $2,154.28
Transcribed Image Text:Tan Company purchased a large server for $29,000. The company paid 30% of the value as a down-payment and received a loan for the balance at 8.30% compounded monthly. The loan has a term of 3 years and Tan Company had to make month-end payments until the loan was settled. a. Calculate the size of the month-end payments. O $912.77 O $638.94 O $278.83 O $623.73 b. What was the total amount paid to settle the loan? O $32,859.72 O $9,920.88 O $23,001.89 O $22,454.28 c. Calculate the total amount of interest paid throughout the term of the loan. O $2,701.89 O $12,559.72 O $10,404.12 O $2,154.28
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