Reference no: EM132560159

Sheridan Inc. developed a new sales gimmick to help sell its inventory of new automobiles. Because many new car buyers need financing, Sheridan offered a low down payment and low car payments for the first year after purchase. It believes that this promotion will bring in some new buyers.

On January 1, 2012, a customer purchased a new $36,120 automobile, making a downpayment of $1,120. The customer signed a note indicating that the annual rate of interest would be 8% and that quarterly payments would be made over 3 years. For the first year, Good-Deal required a $438 quarterly payment to be made on April 1, July 1, October 1, and January 1, 2013. After this one-year period, the customer was required to make regular quarterly payments that would pay off the loan as of January 1, 2015.

Question (a) what is the note amortization schedule for the first year. (Round answers to 0 decimal places, e.g. $38,548.)

Question (b) Indicate the amount the customer owes on the contract at the end of the first year. (Round answers to 0 decimal places, e.g. $38,548.) The customer owes on the contract at the end of the first year

Question (c) Compute the amount of the new quarterly payments. (Round answers to 0 decimal places, e.g. $38,548.) The new quarterly payments