Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:Tan Company purchased a large server for $29,000. The company paid 30% of the value
as a down-payment and received a loan for the balance at 8.30% compounded
monthly. The loan has a term of 3 years and Tan Company had to make month-end
payments until the loan was settled.
a. Calculate the size of the month-end payments.
O $912.77
O $638.94
O $278.83
O $623.73
b. What was the total amount paid to settle the loan?
O $32,859.72
O $9,920.88
O $23,001.89
O $22,454.28
c. Calculate the total amount of interest paid throughout the term of the loan.
O $2,701.89
O $12,559.72
O $10,404.12
O $2,154.28
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