SOLUTION: Southland, Inc. has just borrowed $50,000 to purchase a delivery truck. The contract calls for 4 annual payments of $15,773.54, beginning one year from today. The annual interest r
Algebra.Com
Question 939541: Southland, Inc. has just borrowed $50,000 to purchase a delivery truck. The contract calls for 4 annual payments of $15,773.54, beginning one year from today. The annual interest rate Southland is paying equals
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Southland, Inc. has just borrowed $50,000 to purchase a delivery truck. The contract calls for 4 annual payments of $15,773.54, beginning one year from today. The annual interest rate Southland is paying equals.
-----------------------
total payment = 4*15,773.54 = 63,094.16
----
total interest = 13,094.16
-----
Formula for simple interest:: I = Prt
13,094.16 = 50,000*r*4
----
r = 13094.16/200000 = 0.0655 = 6.55%
------------------
Cheers,
Stan H.
-----------------
RELATED QUESTIONS
A man borrowed $15,000 three years ago. The terms of loan are 10% interest for 10 years... (answered by Theo)
A soft-drink distributor has budgeted $300000 for the purchase of 12 new delivery truck.... (answered by josgarithmetic)
Find the monthly payment for the loan indicated. (Round your final answer to two decimal... (answered by MathLover1)
At graduation, you have a student loan of $19,000. The loan has a fixed annual interest... (answered by ikleyn,math_tutor2020)
The Johnsons have accumulated a nest egg of $50,000 that they intend to use as a down... (answered by math_tutor2020)
algebra.com a george monkey is in the process of negotiating his first contract. the... (answered by ikleyn)
A truck was able to average only 40 mph for the first 4 hours of a delivery route. How... (answered by Alan3354)
Calculate the amount financed, the finance charge, and the monthly payments (in $) for... (answered by Theo)
A car insurance plan has the expected mean annual payment to a client μ = $950 and the... (answered by Theo)