Question: General Computers Inc. purchased a computer server for $75,400. It paid 40% of the value as a down payment and received a loan for the

General Computers Inc. purchased a computer server for $75,400. It paid 40% of the value as a down payment and received a loan for the balance at 7.55% compounded monthly. It made payments of $2098.25 at the end of every three months to settle the loan.

a. What was the amortization period?

b. Construct an amortization schedule for the loan.

c. What was the cost of financing?

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