A construction company needs to buy a bulldozer.  The stated…

A construction company needs to buy a bulldozer.  The stated price for the bulldozer is $41,000.  The manufacture of the bulldozer offers a financing plan with 20% down and quarterly payments for 5 years at 8% APR.  Alternately, the company can pay cash, and will receive a 10% reduction in price for the cash sale.  To determine the effective annual rate (true rate of the loan considering the cash option)  of using the financing plan, which of the following steps is NOT correct?

A restaurant purchased some new major appliances for the kit…

A restaurant purchased some new major appliances for the kitchen.  No payments are to be made in the first year after installation.  Then monthly payments must be made for three years.  When determining the present worth of the payment cash flows they would be treated as a deferred annuity.