Fortune Equipment Inc has purchased a new machine costing 510,000. Shipping and installation cost will be 26,000. The company will provide 20% of the total cost of the machine as cash and borrow the remainder as an installment loan. The company's borrowing rate is 9.5% and the loan must be repaid on a monthly basis over a term of 5 years.
(a) Determine the monthly loan payment required, assuming that the payments are made at the end of each month develop a monthly loan amortization schedule showing split between the interest and principal paid each month over the term of the loan. How much interest is paid in total? If future equipment's tax rate is 30% what is the actual cost of the interest expense