Amazon would like to purchase a building costing $900,000 by paying $361,254 cash on the purchase date and agreeing to make equal payments every three months for the next five years. The first payment is due three months after the purchase date. Amazon's loan has an 8% interest rate. How much will Amazon pay every 3 months

Amazon

The amount that Amazon will pay every 3 months is:

= $15,498.63.

Explanation:

a) Data and Calculations:

Cost of Building =                    $900,000

Down payment =                       (361,254)

Present value of payments =  $538,746

Payment period = 5 years quarterly

Interest rate = 8%

Amount to be paid every 3 months from an online financial calculator:

N (# of periods)  60

I/Y (Interest per year)  8

PV (Present Value)  538746

FV (Future Value)  0

Results

PMT = $15,498.63

Sum of all periodic payments$929,917.59

Total Interest$391,171.59

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.