2. Sarah purchased a machine for $28,000 for her company. She paid 5.00% of this amount as a down payment and financed the rest at 4.42% compounded monthly. She paid $1,125 at the end of every month to settle the loan. a. What was the principal portion of payment number 4? b. What was the interest portion of payment number 4?

2. Sarah purchased a machine for $28,000 for her company. She paid 5.00% of this amount as a down payment and financed the rest at 4.42% compounded monthly. She paid $1,125 at the end of every month to settle the loan. a. What was the principal portion of payment number 4? b. What was the interest portion of payment number 4?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Brett purchased a machine for $22,500 for his company. He paid 5.00% of this amount as a down payment and financed the rest at 4.72% compounded quarterly. He paid $1,125 at the end of every quarter to settle the loan. a. What was the principal portion of payment number 4? Round to the nearest cent b. What was the interest portion of payment number 4?
Please help me answer the following time value of money question. Edison borrowed $10,000 from the Niederriter Loan Company. He has to pay off the loan in 36 monthly payments of $500. What interest rate is he being charged?
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Casey purchased a machine for $28,500 for his company. He paid 5% of this amount as a down payment and financed the rest at 4.82% compounded quarterly_ He paid $1,125 at the end of every quarter to settle the loan. What was the interest portion of payment number 4? Round to the nearest cent. What was the principal portion of payment number 4? Round to the nearest cent.
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