Accounting

posted by .

Big Company purchased a machine on February 1, 2013, and will make seven semiannual payments of $26,000 beginning five years from the date of purchase. The interest rate will be 12%, compounded semiannually. Determine the purchase price of the machine.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Engineering economy

    General Electric issued 1000 debenture bonds 3 years ago with a face value of $5000 each and a bond interest rate of 8% per year payable semiannually. The bonds have a maturity date of 20 years from the date they were issued. If the …
  2. acc

    Case 9-2 Purchase of Assets On October 10, 2005, Mason Engineering Company completed negotiations on a contract for the purchase of new equipment. Under the terms of the agreement, the equipment may be purchased now or Mason may wait …
  3. math

    Big Sky Mining Company must install $1.5 million of new machinery in its Nevada mine. It can obtain a bak loan for 100% of the purchase price, or it can lease the machinery. Assume the following facts apply: a) The machinery fall s …
  4. Accounting

    On April 1, 2011, Albert Company purchased $50,000 of Tetter Company‚Äôs 12% bonds at 100 plus accrued interest of $2,000. On June 30, 2011, Albert received its first semiannual interest. On February 1, 2011, Albert sold $40,000 of …
  5. Accounting

    Target Company issues bonds with a par value of $900,000 on their stated issue date. The bonds mature in 10 years and pay 10% annual interest in semiannual payments. On the issue date, the annual market rate for the bonds is 12%. What …
  6. Accounting

    On October 10, 2010, Mason Engineering Company completed negotiations on a contract for the purchase of new equipment. Under the terms of the agreement, the equipment may be purchased now or Mason may wait until January 10, 2011, to …
  7. Accounting

    On January 1, you will purchase a new car. The automobile dealer will allow you to make increasing annual December 31 payments over the following four years. The amounts of these payments are $4,000: $4,500: $5,000: $6,000. On the …
  8. accounting

    On October 10, 2010, Mason Engineering Company completed negotiations on a contract for the purchase of new equipment. Under the terms of the agreement, the equipment may be purchased now or Mason may wait until January 10, 2011, to …
  9. MATH

    Your original purchase price was $825.00 plus 7% sales tax. You enter into an agreement where the interest (12.5% APR) is waived for the first 12 months provided you make the required monthly payments; otherwise the interest is accrued …
  10. math

    cant find a way tosolve this Five years ago, Ms. Halliday received a mortgage loan from the Scotiabank for $60,000 at 7.8% compounded semiannually for a five-year term. Monthly payments were based on a 25-year amortization. The bank …

More Similar Questions