A real estate developer bought land for $170 000.00 down and monthly payments of $8 450.00 for 5 years. What is the equivalent cash price if money is worth 8.75% compounded semi- annually?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 1PA: Your company is planning to purchase a new log splitter for is lawn and garden business. The new...
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A real estate developer bought land for $170
000.00 down and monthly payments of $8 450.00
for 5 years. What is the equivalent cash price if
money is worth 8.75% compounded semi-
annually?
Answer is 580,948.84 but I need the solution
without using a financial calculator. Manual
solutions please.
Transcribed Image Text:A real estate developer bought land for $170 000.00 down and monthly payments of $8 450.00 for 5 years. What is the equivalent cash price if money is worth 8.75% compounded semi- annually? Answer is 580,948.84 but I need the solution without using a financial calculator. Manual solutions please.
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