Find what will sam have to pay for the equipment

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Present value with periodic rates.

Sam? Hinds, a local? dentist, is going to remodel the dental reception area and add two new workstations. He has contacted? A-Dec, and the new equipment and cabinetry will cost ?$15,000. The purchase will be financed with an interest rate of 9.5?% loan over 10 years.

Problem 1: What will Sam have to pay for this equipment if the loan calls for quarterly payments ?(4 per? year) and weekly payments ?(52 per? year)?

Problem 2: Compare the annual cash outflows of the two payments. Why does the weekly payment plan have less total cash outflow each? year?

Problem 3: What will Sam have to pay for this equipment if the loan calls for quarterly payments (4 per year)?

Problem 4: What will Sam have to pay for this equipment if the loan calls for weekly payments (52 per year?)

Problem 5: Why does the weekly payment plan have less total cash outflow each year?

Reference no: EM132753350

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