Bramble Ltd. purchased a used truck from Trans Auto Sales Inc. Bramble paid a $3,200 down payment and signed a note that calls for 36 payments of $1,046.00 at the end of each month. The stated rate of interest in the note is 5%. As an incentive for entering into the contract, Trans has agreed to forgive the first two payments under the lease. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. (a) What was the purchase price of the used truck excluding the incentive given? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answers to 2 decimal places, e.g. 5,275.25. Round interest rate per month to 4 decimal places, e.g. 1.5792%.) Purchase price of the used truck $

Bramble Ltd. purchased a used truck from Trans Auto Sales Inc. Bramble paid a $3,200 down payment and signed a note that calls for 36 payments of $1,046.00 at the end of each month. The stated rate of interest in the note is 5%. As an incentive for entering into the contract, Trans has agreed to forgive the first two payments under the lease. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. (a) What was the purchase price of the used truck excluding the incentive given? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answers to 2 decimal places, e.g. 5,275.25. Round interest rate per month to 4 decimal places, e.g. 1.5792%.) Purchase price of the used truck $

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 19P

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