$MathMaster logo$

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

107 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)

What is the square root of 37?

+

Find the exact value of sin(60°) + cos (45°) - tan(30°)

+

What is the slope of a line passing through the points (3, 2) and (-1, 5)?

+

New questions in Mathematics

I want to divide R$ 2200.00 between Antônio, Beto and Cássia, so that Beto receives half from Antônio and Cássia receives a third of Beto. Under these conditions, how much more will Beto receive than Cássia?

5 . {2/5 + [ (8/-9) - (1/-7) + (-2/5) ] ÷ (2/-5)} . 8/15

If you have a bag with 18 white balls and 2 black balls. What is the probability of drawing a white ball? And extracting a black one?

Equivalent expression of the sequence (3n-4)-(n-2)

Find all real numbers x that satisfy the equation \sqrt{x^2-2}=\sqrt{3-x}

6-35 A recent study by an environmental watchdog determined that the amount of contaminants in Minnesota lakes (in parts per million) it has a normal distribution with a mean of 64 ppm and variance of 17.6. Assume that 35 lakes are randomly selected and sampled. Find the probability that the sample average of the amount of contaminants is a) Greater than 72 ppm. b) Between 64 and 72 ppm. c) Exactly 64 ppm. d) Greater than 94 ppm.

From 1975 through 2020 the mean annual gain of the Dow Jones Industrial Average was 652. A random sample of 34 years is selected from this population. What is the probability that the mean gain for the sample was between 400 and 800? Assume the standard deviation is 1539

X~N(2.6,1.44). find the P(X<3.1)

List five numbers that belong to the 5 (mod 6) numbers. Alternate phrasing, list five numbers that satisfy equation x = 5 (mod 6)

During a month's time, an automobile sales person receives a 6% commission on the first $5000 in sales, a 7% commission on the next $5000 sales, 8% commission on anything over $10,000. What is her commission for $36,000 in sales?

find missing measure for triangle area = 48 m square base = 10m heaighy = ? m

A buyer purchased a North Carolina home for $475,250. The seller allowed the buyer to assume his first small mortgage with a loan balance of $110,000. How much is the excise tax paid in the transaction? $951 $729.50 $950.50 $221 none of the above

Pablo has a balance of $440,000 and 2/5 of the money is used to pay bills. How much money do you have left after paying the bills?

How do you convert a fraction to a decimal

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?