A Contractor's Price for a New Building Was $85 100

question 123

Essay

A contractor's price for a new building was $85 100.00. Stampede Inc., the buyers of the building, paid $14 000.00 down and financed the balance by making equal payments at the end of every six months for 14 years. Interest is 12% compounded semi-annually.
a) What is the size of the semi-annual payment?
b) How much will Stampede Inc. owe after 6 years?
c) What is the total cost of the building for Stampede Inc.?
d) What is the total interest included in the payments?

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Definitions:

Post Hoc

Short for "post hoc ergo propter hoc," a logical fallacy implying that because one event follows another, the first event was the cause of the second.

Ergo Propter Hoc

A logical fallacy meaning "therefore, because of this," where a cause-and-effect relationship is incorrectly identified based on sequence alone.

Cause And Effect

The relationship between events or things, where one is the result of the other or others.

Post Hoc

is a term derived from the phrase "post hoc ergo propter hoc," meaning "after this, therefore because of this," commonly used to describe a logical fallacy where one event is incorrectly assumed to cause another just because it occurred earlier.