What is the total amount of interest expense jimbo

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Reference no: EM132494530

Use the following information to answer the next two questions: On January 1, 2018, Jimbo Enterprises purchased new equipment for its training center. The equipment cost $220,000. Jimbo paid $25,000 down and is required to pay the rest in semiannual installments for the next 8 years. Jimbo's cost of borrowing is 4%.

Question 1: What is the amount of the semiannual payment Jimbo will make every six months?

Select one:

a. 28,963

b. 16,203

c. 14,362

d. 12,188

e. None of the above

Question 2: What is the total amount of interest expense Jimbo will pay over the life of the loan?

Select one:

a. 64,248

b. 34,792

c. 9,792

d. 7,800

e. None of the above

Reference no: EM132494530

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