Ask Question
BusinessBusiness
6 August, 13:55

Charlie Corp. is purchasing new equipment with a cash cost of $300,000 for an assembly line. The manufacturer has offered to accept $68,900 payment at the end of each of the next six years. How much interest will Charlie Corp. pay over the term of the loan

+3
Answers (2)
  1. 6 August, 14:38
    0
    The answer is D) 113 400

    Explanation:

    Interest are the amounts that exceed the capital repayment (the original $ 300 000 represents the capital repayment). By multiplying the annual payment by the number of years (6 x 68900) and subtracting the original capital amount of $300 000 we're left with $ 113 400. This represents the amount of interest expense over the period
  2. 6 August, 17:29
    0
    D. $113,400

    Explanation:

    Given that

    Cash cost = 300,000

    Installmental payments = $68900 each year for 6 years.

    Therefore

    Interest = total installment payment - cash cost

    = (68900 * 6) - 300,000

    = 413,400 - 300,000

    = $113,400.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Charlie Corp. is purchasing new equipment with a cash cost of $300,000 for an assembly line. The manufacturer has offered to accept $68,900 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Jazz Division operates as a profit center. It reports the following data. Budget amounts Actual results Allocated fixed costs $ 40,000 $ 50,000 Direct fixed costs 80,000 60,000 Sales revenue 460,000 500,000 Variable costs 250,000 280,000 What is the
Answers (1)
A company manufacturing hockey sticks makes an annual assessment of its resources in terms of raw materials, technical expertise, and technological knowhow.
Answers (1)
Economic turmoil has a plus side because it produces opportunities for entrepreneurs who are comfortable with environmental factors outside their control. (A) True (B) False
Answers (1)
Grocery retailer safeway displays the thousands of items it sells in aisles containing related items or product groupings. examples would be the pet food aisle or the soft drink aisle.
Answers (1)
Palmer Soaps is considering a project to expand its line of hand soaps for mechanics and hard laborers. The project has an initial investment of $187,000. Annual cash flows are expected to be $52,000 for five years.
Answers (1)
New Questions in Business
Tim, a manager of a store, believes that his employee, james, is lazy and never comes to work on time. he reached this conclusion after having seen james walk in late on a day a meeting was scheduled.
Answers (2)
A check written by the company for $282 is incorrectly recorded by a company as $228. On the bank reconciliation, the $54 error should be added to the balance per books. deducted from the balance per books. added to the balance per bank.
Answers (1)
What is basic communication
Answers (1)
Which of the following is the biggest advantage of using a yardstick report? A, You can immediately outline a specific course of action B. All data will support your opening recommendation C.
Answers (1)
What does not provided by employer mean on snagajob?
Answers (1)
Home » Business » Charlie Corp. is purchasing new equipment with a cash cost of $300,000 for an assembly line. The manufacturer has offered to accept $68,900 payment at the end of each of the next six years. How much interest will Charlie Corp.
Sign Up Forgot Password?