To purchase $11,500 worth of lab equipment for his business, Deon made adown payment of $1500 and took out a business loan for the rest. After 3years of paying monthly payments of $304.23, he finally paid off the loan.oo(a) What was the total amount Deon ended up paying for the equipment(including the down payment and monthly payments)?(b) How much interest did Deon pay on the loan?$0MAEL

The loan is the sum of money borrowed by the borrower from the lender, where the borrower agrees to…

To purchase $11,500 worth of lab equipment for his business, Deon made a down payment of $1500 and took out a business loan for the rest. After 3 years of paying monthly payments of $304.23, he finally paid off the loan. (a) What was the total amount Deon ended up paying for the equipment (including the down payment and monthly payments)? X 5 ? $0 (b) How much interest did Deon pay on the loan? $0

To purchase $11,500 worth of lab equipment for his business, Deon made a down payment of $1500 and took out a business loan for the rest. After 3 years of paying monthly payments of $304.23, he finally paid off the loan. (a) What was the total amount Deon ended up paying for the equipment (including the down payment and monthly payments)? X 5 ? $0 (b) How much interest did Deon pay on the loan? $0

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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Similar questions

Khalid purchases a new truck for work! If he paid $63,703 for it and it depreciates in value by 50% in the first 7 years, the value of the truck after 7 years is $ (Remember that money is expressed to two decimal places). ?
A man uses a loan program for small businesses to obtain a loan to help expand his vending machine business. The man borrows $25,000 for 2 years with a simple interest rate of 1.3%. Determine the amount of money the man must repay after 2 years.
A $2,000 furniture can be financed by paying $50 per month for 4 years. What is the annual nominal compounding rate for this loan?
4) Raymond bought a new car by trading in his old car which was valued at RM10,000. He had to make an additional payment of RM3,500 as a down payment. He paid RM1,200 every month for five years. The interest rate charged was 4% per annum on the original balance. Find (a) the instalment price of the car (b) the cash price of the car (c) total interest charged (d) outstanding balance immediatley after the 24th payment on the original balance
2. PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULASEnrique Perez bought a house whose value is $1'900,000 cash. He paid $400,000 cash and the rest in 8 equal quarterly payments. If he is charged 10½ % nominal interest on the transaction, a) find the value of each of the quarterly paymentsb) find the total amount paid.c) Find the total amount of interest paid.d) Find the effective rate. Note:In the image, this is the original exercise, it is in Spanish, but it is easy to understand. Very important Note:It is necessary that you make a solution approach and then the result. Above all, to check the procedure and/or the formulas used, especially when you use excel.
A financial engineer designs a new financial instrument that she calls the SafetyNet. This instrument gives the holder access to the following cashflows: • For the first 4 years, the holder receives $95 per year starting one year from today (a total of 4 payments). • The holder does not receive any cashflows for year 5. • Starting at the end of year 6, the holder receives $60 growing at a rate of 4% per year forever. • The holder has to pay a “service fee” of $7 every year starting at the end of year 2; this goes on forever. The prevailing discount rate throughout is 6%. The financial engineer would like to determine a fair market price for this financial instrument. What do you suggest this price to be? Please show your work.
In order to start a small business, Samy borrowed RM40, 000 from a bank. The loan is repaid by monthly installment for five years. The interest charged is 5% on the original balance. (a) Determine the monthly payment. (b) Immediately after paying for three years and six months, he decided to pay off the loan. Using the Rule of 78, calculate the amount he has to pay.
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Howard owns a small electronics repair shop. He wants to borrow $10,000 now and repay it over the next 1 or 2 years. He believes that new diagnostic test equipment will allow him to work on a wider variety of electronic items and increase his annual revenue. Howard received 2-year repayment options from banks A and B. Amount to pay $ per year Amount to pay $ per year Year Bank A Bank B 1 5,378.05 5000.00 2 5,378.05 5755.00 Total Paid 10,756.10 10755.00 During a family conversation, Howard’s brother-in-law offered to lend him the $10,000 now and take $10,600 after exactly 1 year. Now Howard has three options and wonders which one to take. Which one is economically the best?

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