Sam Hinds, a local dentist, is going to remodel the dentist reception area and add two...

Sam Hinds, a local dentist, is going to remodel the dentist reception area and add two new workstations. he has contracted A-Dec, and the new equipment and cabinetry will cost $20,000. the purchase will be financed with an interest rate of 9.5% loan over 7 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 plan have less total cash outflow each year?

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jeff jeffy answered 1 year ago

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