Purchased equipment paying $20,000 down and signed a non-interest-bearing note requiring the balance to be paid in four annual installments of…
Purchased equipment paying $20,000 down and signed a non-interest-bearing note requiring the balance to be paid in four annual installments of $20,000 on the anniversary date of the contract. Based on Bright Light’s 12% borrowing rate for such transactions, the implicit interest cost is $19,253.
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