Seacrest Company Purchased a Machine on January 2,2010

question 70

Essay

Seacrest Company purchased a machine on January 2,2010.Under the terms of the purchase agreement,the company is required to make 14 quarterly installment payments of $29,000 each,beginning April 1,2010.Assuming that the interest rate is 16 percent compounded quarterly,determine the purchase price of the machine.Use future value and/or present value tables in calculating your answer.

---

Definitions:

RAM Memory

Volatile computer memory where data can be read and written, used for storing the operating system, application programs, and data in current use.

Read/Write Head

A component of a disk drive, such as a hard drive, that reads data from and writes data to the disk.

Mechanical Hard Disk

A data storage device that uses mechanical platters and a moving read/write head to access data.

CPU

The Central Processing Unit (CPU) is the primary component of a computer that performs most of the processing inside the computer, acting as the "brain" of the computer.