Equipment is being financed for 10 years by XYZ Corp. with monthly payments. The arrangement with the vendor worked out is as below.
The interest rate is ¾ % per month for the first 48 payments and for the remainder of the loan the interest rate would be 1 % per month.
The equipment cost $500,000.
-What is the monthly payment for the first 48 months?

Question

Quizplus · Accepted Answer

11eddc2e_7efa_4352_80c6_23e0d7c5e408_TBO1121_00 A = 500,000 (A/P, ¾ %, 120)
= 500,000 (0.0127)
= $6,350

Equipment Is Being Financed for 10 Years by XYZ Corp