# Question Donald buys a machine from Biden Manufacturer and signs a contract that calls for a down payment of $18000 and for the payment of$800 at the end of every month for 8 years. The interest rate is 12% p.a. compounded quarterly. If Joe missed the first 15 payments of $800, what must he pay at the time the 16th payment is due to discharge his indebtedness completely? A.$57857.61 B. $59327.45 C.$53198.98 D.$61277.36 E.$63188.59 F. $51778.58 G.$53811.67

Donald buys a machine from Biden Manufacturer and signs a contract that calls for a down payment of $18000 and for the payment of$800 at the end of every month for 8 years. The interest rate is 12% p.a. compounded quarterly. If Joe missed the first 15 payments of $800, what must he pay at the time the 16th payment is due to discharge his indebtedness completely? A.$57857.61

B. $59327.45 C.$53198.98

D.$61277.36 E.$63188.59

F. $51778.58 G.$53811.67

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&#12304;General guidance&#12305;The answer provided below has been developed in a clear step by step manner.Step1/1The correct answer is option . $57,857.61. ExplanationTo get the amount of$57,857.61, we need to add the future value of the missed payments to the present value of the remaining payments starting from the 16th payment.The present value of the remaining payments starting from the 16th payment is:PMT = $800r = 0.12n = 4 (compounded quarterly)t = 8 years x 4 quarters per year - 15 = 17 quartersPV =$800 x ((1 - (1 + 0.12/4)^(-17)) / (0.12/4)) x (1 + 0.12/4)PV = $15,366.87The future value of the missed payments is:PV = -$800 (negative because it's a debt)r = 0.12n = 4 (compounded quarterly)t = 15 quartersFV = -$800 x (1 + 0.12/4)^15FV = -$22,015.26Theref ... See the full answer