Your firm intends to finance the purchase of a new construction crane. The cost is $1,500,000. What is the size of the first payment if the crane is financed with an interest-only loan at an annual rate of 8.50%?

A) $228,611.56
B) $127,500.00
C) $3,391,475.16
D) There is not enough information to answer this question.


Answer: B
Explanation: B) PMT = r × PV = .085 × $1,500,000 = $127,500.

Business

You might also like to view...

Coca-Cola has developed several branded drink products for sale only in Japan, including a noncarbonated ginseng-flavored beverage

Using this as an example, outline the differences between a local brand and a global brand, combination branding, communication-branding, and brand extensions.

Business

The key lesson behind Chapter 8's "A Question of Ethics: Study: Diet Soda Sparks Weight Loss — Whaaaa?" is that ________

A) the research team should have employed post-testing B) blind taste tests can be misleading C) research can be used to manipulate facts D) corporate sponsorship can lead to more reliable results

Business

A major disadvantage to an isolated store location is that _____

a. costs such as outside lighting and security cannot be shared b. rental costs are high c. leases can restrict store operations d. neighboring retailers can cause an overstored environment

Business

One way an organization can develop a core of project management professionals is to administer personality tests and match people attuned to project work to projects

Indicate whether the statement is true or false

Business