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You want to buy a new yacht. The model you are looking at has a...

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Accounting

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You want to buy a new yacht. The model you are looking at has a Manufacturer's Suggested Retail Price of $1,500,000. The dealer has offered to sell you the yacht for $1,250,000. He has also offered 15 years of financing at 1%!! The complete deal is that you put down $250,000 then make annual interest payments of 1% and at the end of the fifteenth year you also pays the $ 1,000,000. You called the bank and they told you that a loan like this would normally have an 6% interest rate. How much is the yacht if you take the Dealer's Deal? Assume you take the Dealer Deal, amortize the first three payments Same yacht. Assume the Dealer Deal was, $1,250,000, $250,000 down and the rest in 15 equal annual payments that include interest at 1%. How much is the yacht if you take the Dealer's Deal? Assume you take the Dealer Deal, amortize the first three payments

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