Aproperty was purchased for $10,000.00 down and quarterly payments of $1,350 for 10 years. if the first payment was made on the date of the purchase and interest is 5.5 % compounded quarterly, a. what was the purchase price of the property? b. how much is the cost of financing? c. what is the effective rate of interest equivalent to a nominal rate of 5.5 % compounded quarterly?

cost of financing is $12108.62

interest is 5.614 %

Step-by-step explanation:

given data

payment = $10000

principal = $1350

time t = 10 year = 10 × 4 = 40

rate  r = 5.5 % = 5.4 /4 = 1.375 %

to find out

purchase price and cost of financing and rate of interest

solution

we know here purchase price is calculated as

purchase price = payment + present value    .................1

present value = principal (1+r) ( 1- / r )

put here value

present value = 1350 (1+0.1375) ( 1- / 0.01375 )

present value = 41891.3833

so from equation 1

purchase price = 10000 + 41891.3833

purchase price = $51891.38

and

so amount of payment is here

amount of payment = 10000 + 40×1350

amount of payment = $64000

so here cost of financing is here

cost of financing = 64000 - 51891.38

cost of financing = $12108.62

and

so here

1 + interest =

1 + interest =

interest = 0.0561448

interest = 5.614 %

hope it you

step-by-step explanation:

sin(7pi/6 - pi/3)  

= sin(7pi/6 - 2pi/6)  

= sin(5pi/6)  

= sin(pi - pi/6)  

= sin(pi/6)  

= 1/2  

sin 7pi/6 - sin pi/3  

= sin (pi + pi/6) - sin pi/3  

= -sin pi/6 - sin pi/3  

= -1/2 - sqrt(3)/2  

= -(1+sqrt(3))2