Use the remaining balance method

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Reference no: EM131956853

Your company owns a piece of equipment that they bought 3 years ago for $50,000 using a bank loan with the following terms: 8% APR, compounded quarterly, monthly payments, with a 5 year term that pays down the equipment cost. If you were to sell the equipment now for $22,000 would you be able to pay of the balance of the loan? How much extra or short would you be? Use the remaining balance method.

Reference no: EM131956853

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