question archive A property was purchased for ?$7640
A property was purchased for ?$7640
Subject:FinancePrice:2.86 Bought3
A property was purchased for ?$7640.00 down and payments of ?$867.00 at the end of every six months for 10 years. Interest is 6% per annum compounded quarterly. What was the purchase price of the? property? How much is the cost of? financing?
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1.) a. $24,980- purchase price of the property
2.) $1,532.86- cost of financing
Step-by-step explanation
$867 x 2= $1,734 x 10= $17,340 +$7640= $24,980- purchase price of the property
F=24,980 (1+.015)4 = 24,980 (1.015)4
F=24.980 ( 1.015 )4
F= $26,512.86
26,512-24,980= $1,532.86- cost of financing
