John and Mary Stevens are purchasing a tractor and will need a $60,000 loan. The contractual rate

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John and Mary Stevens are purchasing a tractor and will need a $60,000 loan. The contractual rate is currently 6% with six equal annual payments. Their lender uses the add-on method of calculating interest.

a. What is the (interest) cost of the loan?

b. What is the total payment (loan plus interest) ?

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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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Posted Date: Mar 15, 2024 11:36 PM

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John and Mary Stevens are purchasing a tractor and will need a $60,000 loan. The contractual rate

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a To calculate the interest cost of the loan using the addon method we first need to calculate the t... View the full answer

Engineering Economy

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