$MathMaster logo$

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)

Find the derivative of f(x) = cos(x) + 3sin(x) - 2tan(x) at x = π/4.

+

Find the measure of the third angle in a triangle if the two given angles measure 40° and 60°.

+

Find the derivative of f(x) = 3x^2 - 4x + 5.

+

New questions in Mathematics

Use the digits of 1,9,2,3 to come up with all the numbers 98 and 95

³√12 x ⁶√96

Suppose that a device has been created that launches objects at ground level and that its operation is modeled by the function h(x) = -4×² + 256x, with h being the height (in meters) and x being the distance (in meters) What is the maximum height that the object reaches?

Suppose 50% of the doctors and hospital are surgeons if a sample of 576 doctors is selected what is the probability that the sample proportion of surgeons will be greater than 55% round your answer to four decimal places

Answer the following questions regarding the expression below. 0.1 (a) Write the number as a fraction.

In a grocery store, when you take out 3 peppers and 4 carrots, there are 26 peppers and 46 carrots left. How many peppers and carrots were there initially?

A recurring sequence is one where elements repeat after completing one standard. If the sequence AB8C14D96AB8C1... is recurring its twentieth term is equal to: (A) B. (B) 8. (C) A. (D) 6. (E) D.

Engineers want to design seats in commercial aircraft so that they are wide enough to fit 95% of all males. (Accommodating 100% of males would require very wide seats that would be much too expensive.) Men have hip breadths that are normally distributed with a mean of 14.4 in. and a standard deviation of 1.2 in. Find P95. That is, find the hip breadth for men that separates the smallest 95% from the largest 5%.

The simple average of 15 , 30 , 40 , and 45 is

4+168×10³×d1+36×10³×d2=-12 -10+36×10³×d1+72×10³×d2=0

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

Jasminder has made 55% of the recipes in a particular cookbook. If there are 9 recipes that he has never made, how many recipes does the cookbook contain?

For what values of m is point P (m, 1 - 2m) in the 2⁰ quadrant?

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

How to factorise 5y^2 -7y -52

2 - 6x = -16x + 28

calculate the product of 4 and 1/8

9n + 7(-8 + 4k) use k=2 and n=3

(3.1x10^3g^2)/(4.56x10^2g)