Question

Question 8 O out of 0.5 points Pope Industries purchased a machine from Fitz Corporation on October 1, 2016. In payment for the $211,000 purchase, Pope issued a two year installment note to be paid in equal quarterly payments at the end of X each quarter. The payments include interest at an annual rate of 129. Each installment payment will be 5 Question 9 O out of 0.5 points

Answer 1

Quarterly payment = [P x R x (1+R)^N]/[(1+R)^N-1]

Where,

P= Loan Amount =$211000

R= Interest rate per period =12%/4 =3%

N= Number of periods =2*4 =8

= [ $211000x0.03 x (1+0.03)^8]/[(1+0.03)^8 -1]

= [ $6330( 1.03 )^8] / [(1.03 )^8 -1

=$30058.3