A company borrowed at 5.53% compounded annually to purchase equipment, agreeing to make payments of...
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A company borrowed at 5.53% compounded annually to purchase equipment, agreeing to make payments of $2030 at the end of every three months for 15 payments.
a) what is the equivalent cash price of the equipment?
b) how much will be over at the end of two years?
c) how much of the principle will be repaid within the first two years?
d) how much interest is paid during the first two years?
****Answer for "a" has been already given and is correct
A company borrowed at 5.53% compounded annually to purchase equipment, agreeing to make payments of $2,030 at the end of every three months for 15 payments. (a) What is the equivalent cash price of the equipment? (b) How much will be owed at the end of two years? (c) How much of the principal will be repaid within the first two years? (d) How much interest is paid during the first two years? (a) The cash price of the equipment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) The amount owed at the end of two years is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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