The repair costs for some handheld equipment at the office of NAIA is estimated to be P 120,000 in the first year, increasing by P 30,000 per year in the subsequent years. Determine the amount that the office will need to deposit into a bank account paying 4% interest, to provide for the repair cot for the next five years? 790,958 790,859 798,859 798,958

The repair costs for some handheld equipment at the office of NAIA is estimated to be P 120,000 in the first year, increasing by P 30,000 per year in the subsequent years. Determine the amount that the office will need to deposit into a bank account paying 4% interest, to provide for the repair cot for the next five years? 790,958 790,859 798,859 798,958

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 19P

See similar textbooks

Similar questions

A solid waste disposal company borrowed money at 10% per year interest to purchase new haulers and other equipment needed at the company-owned landfill site. If the company got the loan 2 years ago and paid it off with a single payment of $4,600,000, what was the principal amount P of the loan? O a. $3806153 O b. $3810653 O. $3816035 O d. $3801653
A design studio received a loan of $8,950 at 5.60% compounded semi-annually to purchase a camera. If they settled the loan in 2 years by making quarterly payments, construct the amortization schedule for the loan and answer the following questions: a. What was the payment size? Round to the nearest cent b. What was the size of the interest portion on the first payment? ← a acer SUBMIT QUESTION SAVE PROGRESS V SUBMIT ASSIC
A steel mill estimates that one of its furnace will require maintenance of P20, 000.00 at the end of year 2, P40, 000.00 at the end of year 4 and P80, 000.00 at the end of year 8. What uniform semi-annual amounts could it set aside over the next eight years at the end of each period to meet these requirements of maintenance cost if all the funds would earn interest at the rate of 6% per year compounded semi-annually?
A pottery factory purchases a continuous belt conveyor kiln for $48,000. A 6.2% APR loan with monthly payments is taken out to purchase the kiln. If the monthly payments are $428.13, over what term is this loan being paid? A. 14 years B. 15 years C. 13 years D. 12 years Please use BA II where applicable.
A building is priced at $100,000. If a downpayment of $30,000 is made, an a payment of $1,000 every month thereafter is required, how many months will it take to pay for the building? Interest is charged at a rate of 12% compounded monthly A. 100 B. 70 C. 142 D. 121
A pottery factory purchases a continuous belt conveyor kiln for $64,000. A 7.2% APR loan with monthly payments is taken out to purchase the kiln. If the monthly payments are $605.73, over what term is this loan being paid? OA. 14 years OB. 15 years OC. 12 years OD. 13 years
A general purpose truck is purchased for business. Its cost Basis is 70,000. It will last 10 years and be sold for 10,000. i = 6% for the loan with monthly payments. What is the depreciation allowance for the third year using MACRS? O 19466 O 894 21774 O 26971 O 13440
A pottery factory purchases a continuous belt conveyor kiln for $68,000. A 6.3% APR loan with monthly payments is taken out to purchase the kiln. If the monthly payments are $765.22, over what term is this loan being paid?
A construction company plans to accelerate the payments on an equipment loan as production increases. The initial payment is $10,000 per year and the plan is to increase the payment, beginning in year 2, by an additional $1,000 each year through year 10. Determine the equivalent annual payment if the loan interest rate is 12%. Select one: O a. $13,585 Ob. $12,650 Oc. $18,650 O d. $15,485 Next page GRO3-07.06.2021 Time:14.30 Jump to... u Rabiu (Log out) N 204 14:43 AK A O 4x O ENG 24/06/2021
A house costs $142,000, It is to be paid off in exactly ten years, with monthly payments of $1,779.64. What is the APR of this loan? A. 6.75% O B. 8.75% C. 7.75% O D. 9.75%
A logo design company purchases four new computers for $16,500. The company finances the cost of the computers for 3 years at an annual interest rate of 4.175% compounded monthly. Find the monthly payment (in dollars) for this loan. Round your answer to the nearest cent.
An engineer wants to purchase a house for $100,000 and has $20,000 cash to use as the down payment. The bank offers a loan for the remainder at 9% nominal interest with the term of the loan being 20 years and monthly payments. Assuming the payment is the same for all months, the monthly loan payment is close to: a. $720 b. $689 c. $572 d. $741