1. Commercial Vans, Inc., will sell you a used van for your business for $29,000 with no money down. You agree to make monthly payments for 3 years. The stated rate on the loan is 6.5%. How much is each payment? Final Answer _________________
2. Same setup for the van - EXCEPT the rate of interest is 4.5% AND you can get terms for monthly payments over 4 years. NOW how much is each payment? Final Answer _________________ WHY, for a smaller business might this option be more manageable and preferable, related to cash flow?
3. Hauler's Express Company requests a loan from Major Money Banking Institution for $225,000 to purchase a major equipment item, to be repaid in 3 equal annual installments, NOT monthly. MMBI agrees to an interest rate of 6.5% on the loan. How much is each annual payment? Final Answer _________________ ALSO - how much total interest has Hauler's paid over the course of the 3 years? Final Answer _________________.