Ivanhoe Tooling Ltd. is assessing two available options for the purchase of new equipment with a negotiated cash price of $150,000. The manufacturer is willing to accept a down payment of 20% of the purchase price and an instalment note for the balance. The note would require quarterly fixed principal payments (plus interest) starting October 1, 2023, for a period of two years. Ivanhoe has a proposal from its bank for an instalment loan for two years that requires a fixed blended monthly payment (including both principal and interest) starting August 1, 2023. The loan would be for 80% of the equipment's purchase price. The current market rate of interest is 8%. Both contracts have an interest rate of 8%. .

A).

Calculate the amount of the payments required of Ivanhoe under each alternative. Quarterly fixed principal + interest payments option with manufacturer: Total amount of payments $ 0.5/1

B).

Fixed blended monthly instalment note with the bank including principal and interest: (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 2 decimal places, e.g. 5,275.25. Round interest rate per month to 5 decimal places, e.g. 1.25976%.)