A piece of equipment will cost $42,500 and the seller is offering you 4.1% interest. The lender
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Question:
The lender have agreed that this loan will be payed back in one payment at the end of the 4 years.
How much will you pay if the lender charges compound interest?
How much will you pay if the lender charges simple interest?
2.There is another requirement for equipment and you are considering a loan for $51,232 at 3.8% interest over 4 years.
Show two DIFFERENT ways and calculate the results that demonstrate financial equivalence for this problem.
*Two different methods using COMPOUND INTEREST.
How much will you pay over the life of the loan in each way?
3. Buying a boat in 15 years from retirement . Need about $195,000 in the bank before retirement to buy it.
You have $11000 to open the account and you will deposit $650 at the end of each month.
What yearly rate will you need in the market for this to work? yearly rate
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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