
finance
One retailer charges $2,400 for an exercise bicycle. An health club buys ten of these bikes. The club makes a down payment of $2,000 and agrees to amortize the balance with monthly payments at 12% interest on the unpaid balance for 5 years.
a) Calculate the monthly payment.
b) Prepare an amortization schedule, similar to the one in the Lecture notes, showing the first six payments.

Hey there...
It should be quite simple...
10 bicycles is $2.400 x 10 = $24.000...
The club pays $2.000 at first, so the rest of the 'loan' is $22.000, which leaves us to find the monthly payment  it's easily done  if you have Excel  it's using the PMT formula  I'm assuming the interest rate is per year, so  I approximate the monthly interest rate to 12%/12 = 1%  the PMT formula would look like... =PMT(0,01;(5*12);22000), which equals (just about) $500...
It should also be easy to show an amortization schedule...
(Beginning balance) (payment) (interest) (pmt  interest) (End balance)
Period #1
Beginning balance: 22.000 payment: $500 interest: (1% of 22.000) (pmt  interest): $220 End balance: 21.780
Period #2
Beginning balance: 21.780 payment: $500 interest: (1% of 21.780) (pmt  interest): ? End balance: ?
etc., etc.
Simon DK  I hope it helps...