### Purchase price of the new equipment

Assignment Help Operation Management
##### Reference no: EM131340792

Hoo-Rye Bakery purchased new equipment by making a down payment of \$2,000 and agreeing to make payments of \$458 at the end of each month for five years. Interest is 9.2% compounded monthly.

a) What is the purchase price of the new equipment? Show your calculations.

b) How much interest will have to be paid under this arrangement?

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