$MathMaster logo$

MathMaster

Home
general
new bread bakery purchased new equipment by making a down payment of 2000 and agreeing to make payments of 458 at the end

Question

New Bread Bakery purchased new equipment by making a down payment of $2000 and agreeing to make payments of $458 at the end of each month for five years. Interest is 9.2% compounded monthly. What was the purchase price of the new equipment? How much interest will have to be paid?

205

likes

1024 views

Answer to a math question New Bread Bakery purchased new equipment by making a down payment of $2000 and agreeing to make payments of $458 at the end of each month for five years. Interest is 9.2% compounded monthly. What was the purchase price of the new equipment? How much interest will have to be paid?

$Expert avatar$

4.5

108 Answers

r = \frac{0.092}{12} = 0.0076667

PV = 458 \frac{1 - (1 + 0.0076667)^{-60}}{0.0076667}

PV = 458 \frac{1 - (1.0076667)^{-60}}{0.0076667}

PV \approx 458 \times 47.9646 \approx \$21,960.57

\text{Total Paid} = 458 \times 60 = \$27,480

\text{Interest Paid} = 27,480 - 21,960.57 = \$5,519.43

\text{Total Purchase Price} = 21,960.57 + 2,000 = \$23,960.57

\text{Purchase Price} = \$23,960.57

\text{Total Interest Paid} = \$5,519.43

Frequently asked questions (FAQs)

Math question: Find the x-coordinate of the vertical asymptote of the reciprocal function f(x) = 1/x.

+

What is the value of sin²(30°) + cos²(30°)?

+

What is the derivative of sin(x^2) using the chain rule?

+

New questions in Mathematics

calculate the derivative by the limit definition: f(x) = 6x^3 + 2

How many percent is one second out a 24 hour?

Find the equation of the normal to the curve y=x²+4x-3 at point(1,2)

Write 32/25 as a percent

If f(x) = 3x 2, what is the value of x so that f(x) = 11?

-3x 2y = -6; -5x 10y = 30

Solve this mathematical problem if 3/5 of a roll of tape measures 2m. How long is the complete roll?

If 0101, what is the binary representation of the 4x16 decoder output?

Find the minimum value of the function y = -4 x3 + 60 x2 -252 x + 8 for values of x between x = 0 and x = 9 Enter the value of the function, not the value of x

If the mean of the following numbers is 17, find the c value. Produce an algebraic solution. Guess and check is unacceptable. 12, 18, 21, c, 13

a coffee shop has 9 types of creamer and 11 types of sweetener. In how any ways can a person make their coffee?

Today a father deposits $12,500 in a bank that pays 8% annual interest. Additionally, make annual contributions due of $2,000 annually for 3 years. The fund is for your son to receive an annuity and pay for his studies for 5 years. If the child starts college after 4 years, how much is the value of the annuity? solve how well it is for an exam

Find the symmetric point to a point P = (2,-7,10) with respect to a plane containing a point Po = (3, 2, 2) and perpendicular to a vector u = [1, -3, 2].

A grain silo has a height of 8.8m with a 11.4m diameter. If it is filled 0.5% of it's volume, how much grain (m^3) is stored in the silo? (0 decimal places)

Dano forgot his computer password. The password was four characters long. Dano remembered only three characters: 3, g, N. The last character was one of the numbers 3, 5, 7, 9. How many possible expansions are there for Dano's password?

Solve the system of equations by the addition method. 0.01x-0.08y=-0.1 0.2x+0.6y=0.2

Find the rule that connects the first number to the second number of each pair. Apply the rule to find the missing number in the third pair. (18 is to 22) (54 is to 26) (9 is to ?)