Present value with periodic rates

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Reference no: EM131359793

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 ?$20,000.

The purchase will be financed with an interest rate of 8?% loan over 6 years. 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)? Compare the annual cash outflows of the two payments. Why does the weekly payment plan have less total cash outflow each? year?

Reference no: EM131359793

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