A company purchases a small office building as its new headquarters. The building cost $715,000. To...

 

Transcribed Image Text:

A company purchases a small office building as its new headquarters. The building cost $715,000. To purchase the building, the company issues a 15-year instalment note with 5% interest. The company is considering two options: a. Pay $0 down and make monthly payments of $5,654.17 over 15 years. b. Pay $161,000 down and make payments of $4,381.00 over 15 years. For each option, determine (1) the total cash paid for the building over 15 years, including the down payment, and (2) total interest paid over 15 years. (Do not round your intermediate calculations. Round your answers to 2 decimal places.) at. Total cash paid in option (a) b1. Total cash paid in option (D) 2. Total interest paid in option (a) b2. Total interest paid in option (b) A company purchases a small office building as its new headquarters. The building cost $715,000. To purchase the building, the company issues a 15-year instalment note with 5% interest. The company is considering two options: a. Pay $0 down and make monthly payments of $5,654.17 over 15 years. b. Pay $161,000 down and make payments of $4,381.00 over 15 years. For each option, determine (1) the total cash paid for the building over 15 years, including the down payment, and (2) total interest paid over 15 years. (Do not round your intermediate calculations. Round your answers to 2 decimal places.) at. Total cash paid in option (a) b1. Total cash paid in option (D) 2. Total interest paid in option (a) b2. Total interest paid in option (b)

Answer rating: 100% (QA)

Months in a year 12 a1 Total cash paid in option a ... View the full answer