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on april 1, year 1, a new customer purchased a piece of equipment from thomas tech center by paying $5,000 down and $7,000 at the end of each of the next 25 calendar quarters. what is the selling price of the machinery if the rate of interest agreed upon was 16% compounded quarterly?

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anshumanaryan799

$ 323,293 is the selling price of the machinery if the rate of interest agreed upon was 16% compounded quarterly.

Accounts                       Debit          Credit

Cash                              $5,000

Equipment

(Record the down payment)              $5,000

Notes Receivable        $ 323,293

Equipment                                          $ 323,293

Record the receivable

An interest rate tells you how high the cost of borrowing is, or high the prices are for saving. So, if you are a borrower, the interest rate is the quantum you're charged for adopting a plutocrat, shown as a chance of the total quantum of the loan.

Using the interest rate formula, we get the interest rate, which is the chance of the top quantum, charged by the lender or bank to the borrower for the use of its means or plutocrat for a specific time period. The interest rate formula is Interest Rate( Simple Interest × 100)/( star × Time).

Learn more about interest here: https://brainly.com/question/25793394

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