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:

Longissimus Dorsi

A muscle in the back that is part of the erector spinae group, helping to extend, flex, and rotate the spine and neck.

Fascia

A band or sheet of connective tissue, primarily collagen, beneath the skin that attaches, stabilizes, encloses, and separates muscles and other internal organs.

Scalpel

A small, sharp knife that is used in surgeries to make incisions or cut tissues.

Probe

A device or instrument used to explore, investigate, or measure something within the body or in a scientific experiment.