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Sam Hinds, a local dentist is going to remodel the dental reception area and add two new workstations. He has contacted A-DEC, and the new equipment cabinetry will cost $16,000. The purchase will be financed with an interest rate of 9.5% loan over 9 years. What will Sam have to pay for this equipment if the loan calls for semiannual payments (2 per year) and monthly payments (12 per year)? Compare the annual cash outflows of the two payments. Why does the monthly payment have less totally cash outflow each year?
What will Same have to pay for this equipment if the loan calls for semiannual payments (2 per year)? (round to the nearest cent)
$
What will Sam pay for this equipment if the loan calls for monthly payments (12 per year)?
Why does the monthly payment have less totally cash outflow each year?
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