Junior has bought a four-wheel-drive Suzuki Vitara SUV for his confectionery business. The price of the vehicle was $6,500,000, of which he made $2,500,000 down payment and took out an amortized loan for the balance. His local bank made the loan at 12% interest for five years. He is to pay by the principal and interest in five equal annual installments beginning one year from now. Determine the amount of junior annual payments. Please show formula for solution without using financial calculator or excel. I am using a texas instruments calculator.

Junior has bought a four-wheel-drive Suzuki Vitara SUV for his confectionery business. The price of the vehicle was $6,500,000, of which he made $2,500,000 down payment and took out an amortized loan for the balance. His local bank made the loan at 12% interest for five years. He is to pay by the principal and interest in five equal annual installments beginning one year from now. Determine the amount of junior annual payments. Please show formula for solution without using financial calculator or excel. I am using a texas instruments calculator.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 69P

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