Why does monthly payment plan have less total cash outflow

Reference no: EM132077738

Question: 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 8.5% loan over 7 years. What will Sam have to pay for this equipment if the loan calls for quarterly payments (4 per year) and monthly payments (12 per year)? Compare the annual cash outflows of the two payments. Why does the monthly payment plan have less total cash outflow each year?

Reference no: EM132077738

Questions Cloud

Quantity sold and p is the price of the product : The demand curve for a product is given by q = f(p) = 6000e^-0.16p where q is the quantity sold and p is the price of the product, in dollars.

Create two more functions : Create two more functions. The first function will discover if there were upper case letters in the single letter user input.

How would you recommend that they organize : Sam Jones, Mary Adams, and Larry Brown have been talking about starting their own business for several years. Sam is an electronic repairman.

Design a circuit to implement this system : A logic circuit has three inputs C, B, A, where A is the least-significant bit. The circuit has three outputs R, Q, and P

Why does monthly payment plan have less total cash outflow : 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.

Population will be decreasing at a rate : The world's population1 is about f(t) = 6.91e^0.011t billion, where t is time in years since 2010. Find f(0), f ' (0), f(8), and f ' (8). Using units

Write a script called project4 in which you assign : Write a script called project4 in which you assign an integer number to a variable. Assign the value of that number multiplied by itself to a variable.

How do you find the initial cash flows : Sambuka, Inc., can issue bonds either in U.S dollars or in Swiss francs. Dollar- denominated bonds would have a coupon rate of 15 percent.

Create a flow chart and identify a list of modules : Create a flow chart and identify a list of modules/functions/methods and data structures required for implementation in Java.

User Account

All Pages