1. Your firm intends to finance the purchase of a new construction crane. The cost is? $1,500,000. What is the size of the first payment if the crane is financed with an interestminus−only loan at an annual rate of 8.50%?
A. $127,500.00
B. $3,391,475.16
C. $228,611.56
D. There is not enough information to answer this question.
2. Payments with periodic rates.
Denise has her heart set on being a millionaire. What payment does Denise need to make at the end of each month over the coming 42 years at 7% APR to reach her retirement goal of $1.15 million?
What monthly payment does Denise need to make to reach her retirement goal?
$______