Question

4. Captain Hook, bought a new navigation sys- tem for $10,000 from Pan Electronics on March 20. He paid $2000 in cash and signed a conditional sales contract requiring a pay- ment on July 1 of $3000 plus interest on the $3000 at a rate of 11%, and another payment on September 1 of $5000 plus interest at 11% from the date of the sale. The vendor immedi- ately sold the contract to a finance company, which discounted the payments at its required did Pon Electronics receive from the contract

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Answer 1

$366.30

Explanation:

$10,000-$2,000 = 8,000

11% of 3,000= $330

8,000-3,000 + 330 = $5,330

5,330 - 5,000 = $330

11% of 330 = $36.30

$330 + 36.30 = $366.30