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An excavation contractor deposited 200000 quarterly into a fund paying a nominal interest rate Of 8% per year compounded semiannually For a period of 4 years assume there is no interpolation interest accured . At the end of the fourth year they want to purchase a fleet of trucks for 5000000.The contractor intents to make an immediate cash payment equal amount accumulated and to pay for the rest by equal month end payments. Their financing agreement with the truck dealer is payment should be completed in 18 months and the nominal interest rate should be 18% per year compounded monthly. What will these monthly payments be? Use 4 digits after the decimal point in your interest rate calculation.
This document contains various important questions and their appropriate answers in the subject field of Economics.
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