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The R&T company is acquiring new sewing machines in the total amount of $30,000.00

The R&T company is acquiring new sewing machines in the total amount of $30,000.00

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
Problem 1PS
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The R&T company is acquiring new sewing machines in the total amount of $30,000.00 to be paid monthly in twelve equal installments. During the negotiations, the seller informed that, in case of advance payment of installments, there would be a Commercial discount for each month in advance. The interest rate is 1.5% per month. On the due date of the 8% installment, he found that he had money to pay off the last installment as well. Determine the discount obtained on this installment, with simple interest option. A) 120.00 B) 130.00 C) 140.00 D) All of the above alternatives are correct. E) All the above alternatives are not correct.
Transcribed Image Text:The R&T company is acquiring new sewing machines in the total amount of $30,000.00 to be paid monthly in twelve equal installments. During the negotiations, the seller informed that, in case of advance payment of installments, there would be a Commercial discount for each month in advance. The interest rate is 1.5% per month. On the due date of the 8% installment, he found that he had money to pay off the last installment as well. Determine the discount obtained on this installment, with simple interest option. A) 120.00 B) 130.00 C) 140.00 D) All of the above alternatives are correct. E) All the above alternatives are not correct.
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