Question

Suppose a company is buying a piece of equipment for $ 140,000 and requires a loan to pay for it. The following options are given: a. Monthly payments for 3 years starting one month after the purchase, with an annual rate of 2.4% compounded monthly. b. Monthly payments for 3 years starting 6 months after the purchase, with an annual interest rate of 3.6% compounded monthly. c. Monthly payments for 3 years starting one month after the purchase with nominal interest compounded monthly of 2% for the first year, 3% for the second year and 4% for the third year. Payments for the first year are X, the second year are X + 25 and the third year X+50. Find the monthly payments, the total amount paid and total interest paid under each of the three options.

Answer #1

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So here i provide you all details of these three options...

Monthly payments ,total amount and total interest..

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