Model XR 55684
$352,000 zero interest loan
Quarterly payments of $22,000 for only 4 years
The ad captured Perry’s attention partly because he was concerned that the interest charges incurred by his business were getting out of line. However, the price was higher than prices for this model he had seen elsewhere.
Advise Mr. Perry on the purchase he is considering. How should the note payable and the equipment be valued?