Answer:
The monthly repayment is $304.33
Explanation:
The actual cost of the machine is $12,500,the amount to be paid monthly over 3 years is $12500-(15%*$12,500)=$10625
$10,625 is to be repaid over three years on monthly basis
We can use pmt formula in excel
=pmt(rate,nper,pv.fv)
rate is 2% per year to be divided by 12 months in order to arrive at monthly
2%/12=0.001666667
nper is 3 multiplied by 12 as there are twelve repayments in a year which is 36
PV is the present value of the loan which is $10,625
FV is the future which is zero
=pmt(0.001666667
,36,-10,625,0)
=$304.33
