$MathMaster logo$

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)

What is the value of sine

+

Math question: How many degrees are there in the sum of the interior angles of a triangle?

+

What is the multiplicative inverse of the complex number 3 + 4i?

+

New questions in Mathematics

Kayla has $8,836.00 in her savings account. The bank gives Kayla 5%of the amount of money in account as a customer bonus. What amount of money does the bank give Kayla? Justify your answer on a 6th grade level.

what is the annual rate on $525 at 0.046% per day for 3 months?

2x2 and how much?

How many anagrams of the word STROMEC there that do not contain STROM, MOST, MOC or CEST as a subword? By subword is meant anything that is created by omitting some letters - for example, the word EMROSCT contains both MOC and MOST as subwords.

solve for x 50x+ 120 (176-x)= 17340

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

The population of Pittsburgh, Pennsylvania, fell from 520,117 in 1970 to 305,704 in 2010. Write an exponential function P(t) modeling the population t years after 1970. Round the growth factor to the nearest tem thousandth.

viii. An ac circuit with a 80 μF capacitor in series with a coil of resistance 16Ω and inductance 160mH is connected to a 100V, 100 Hz supply is shown below. Calculate 7. the inductive reactance 8. the capacitive reactance 9. the circuit impedance and V-I phase angle θ 10. the circuit current I 11. the phasor voltages VR, VL, VC and VS 12. the resonance circuit frequency Also construct a fully labeled and appropriately ‘scaled’ voltage phasor diagram.

In an economy with C= 10+0.8 Yd ; I= 20+0.1Y ; G= 100 ; X= 20 ; M=10+0.2Y ; T=-10+0.2Y and R= 10, when knew that Yd= Y-T+R. How much is the budget? A. -23.18 B. -28.13 C. -13.28 D. -32.18

A 20,000 kg school bus is moving at 30 km per hour on a straight road. At that moment, it applies the brakes until it comes to a complete stop after 15 seconds. Calculate the acceleration and the force acting on the body.

94 divided by 8.75

You buy a $475,000 house and put 15% down. If you take a 20 year amortization and the rate is 2.34%, what would the monthly payment be?

What is the total amount due and the amount of interest on a 3-year loan of $1,000 at a simple interest rate of 12% per year?

Let N be the total number of ways to choose at least one ride, out of a total of 7 different ones, existing in an amusement park. Can it be said that N is a natural number equal to?

How many digits are there in Hindu-Arabic form of numeral 26 × 1011

Define excel and why we use it?