Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. the apex company sold a water softener to marty sm

The Apex Company sold a water softener to Marty Smith. The price of the unit...

80.2K

Verified Solution

Question

Finance

The Apex Company sold a water softener to Marty Smith. The price of the unit was $350. Marty asked for a deferred payment plan, and a contract was written. Under the contract, the buyer could delay paying for the water softener if he purchased the coarse salt for recharging the softener from Apex. At the end of 2 years, the buyer was to pay for the unit in a lump sum, with interest at a quarterly rate of 1.5%. According to the contract, if the customer ceased buying salt from Apex at any time prior to 2 years, the full payment due at the end of 2 years would automatically become due. Six months later, Marty decided to buy salt elsewhere and stopped buying from Apex, whereupon Apex asked for the full payment that was to have been due 18 months hence. Marty was unhappy about this, so Apex offered as an alternative to accept the $350 with interest at 10% per semiannual period for the 6 months. Which alternative should Marty accept? Explain.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Briefly describe Somatic Hypermutation and Affinity Maturation processes. Include in your answer: a) what each of these...

Physics
1.2K views

A thin uniform stick of mass M and length is positioned vertically with its tip...

Physics
1.2K views

1 Work done by the force F x yi N in displacing a body from...

Basic Math
1.2K views

I can find common factors and multiples. D Jerrie practices the piano every three days,...

Calculus
1.2K views

a Write and simplify the integral that gives the arc length of the following curve...

Algebra
1.2K views

ind the vertex Sketch the inction y 2x 2 16x 33

Algebra
1.2K views

Show all steps to find the sum of the first 17 terms of the geometric...

Accounting
1.2K views

Use the following Financial statements to answer: Great Lakes Manufacturing Inc. comparative Statement of...

Accounting
1.2K views

Factor Company is planning to add a new product to its line. To manufacture this...

Accounting
1.2K views

Why the congress enacts the provision in the tax law that taxes unearned income (...

Accounting
1.2K views

If the market rate of interest is 8%, the price of 6% bonds paying interest...

Accounting
1.2K views

Background Mason Inc. (Mason or the Company) is a U.S. public company that files quarterly...