Question: Prepare a note amortization schedule for the first year. (Round answers to 0 decimal places, e.g. 38,548 .) Blue inc developed a new sales gimmick



Prepare a note amortization schedule for the first year. (Round answers to 0 decimal places, e.g. 38,548 .) Blue inc developed a new sales gimmick to help sell its inventory of new automobiles. Because many new car buyers need financing. Blue offered a low downpayment and low car payments for the first year after purchase. It believes that this promotion will bring in some new buyers. On January 1, 2025, a customer purchased a new $32,600 automobile, making a downpayment of $600. The customer signed a note indicating that the annual rate of interest would be 12% and that quarterly payments would be made over 3 years. For the first year, Blue required a $400 quarterly payment to be made on April 1. July 1, October 1, and January 1, 2026. After this one-year period, the customer was required to make regular quarterly payments that would pay off the loan as of January 1,2028. Click here to view factor tables: Prepare a note amortization schedule for the first year. (Round answers to 0 decimal places, e.8. 38,548.) Compute the amount of the new quarterly payments. (Round present value factor calculations to 5 decimal places, e.s. 1.25124 and the finol onswer to 0 decimal places, e.s. 58,971.) The new quarterly payments eTextbook and Media Attempts: 1 of 4 used (d) The parts of this question must be completed in order. This part will be available when you complete the part above: Indicate the amount the customer owes on the contract at the end of the first year. (Round answer to 0 decimal places, e S. 38,548 .) The customer owes on the contract at the end of the first year eTextbook and Media Attempts: 1 of 4 used (c) Compote the amount of the new quarterly payments. (Round present value factor calculations to 5 decimal places, es. 1.25124 and the final answer to 0 decimal places, es. 58.971.) The new quarterly payments
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
