Blackstone company purchased a new software system costing $35,000. to finance the purchase, blackstone signed a contract agreeing to pay the cost over the next 8 years, with a payment due every six months; the first payment will be made six months from the date of purchase. blackstone's usual interest rate is 10%. what is the amount of the payment required (rounded to the nearest dollar)? select one: a. 16,030 b. 6,560 c. 3,229 d. 2,575 e. none of the above

c. 3,229

Explanation:

It is a present value because the company purchased a new software today. Again, the payment is distributed by yearly or monthly payment up to 8 years, so, it is an ordinary annuity of present value. Since the payment is due every six months, it is a semiannual payment.

To determine the payment, we have to calculate the ordinary annuity of present value:

PVoa = PMT x [{1 - (1+i/m)^(-n*m)}/(i/m)], as it is a semiannual payment.

Given,

PVoa = $35,000

interest rate, i = 10% = 0.10

Number of payments per year, m = 2

therefore, i/m = 0.10/2 = 0.05

Number of year, n = 8

Putting those values in the PVoa formula, we can get,

$35,000 = PMT x [{1 - (1+0.05)^(-8*2)}/0.05]

or, $35,000 = PMT x [(1 - 0.4581)/0.05]

or, $35,000 = PMT x 10.83777

or, PMT = $35,000/10.83777

or, PMT = $3,229

It means Blackstone Company has to pay $3,229 as his first payment after the six months.

explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.

the answer is account d