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3. You are delinquent on your accounts payable balance. Youve agreed to a 6 year monthly repayment schedule at an interest r
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Answer #1

This question requires application of PV of annuity formula

PV =

1- (1+ г)-т Р т Р— Рeriodic Раутent т 3 гate рer period п 3D питber of periods

n = 6 * 12 = 72 months, r = 5.75%/12 = 0.4792% (monthly)

(10.004792)2 72, 650 P* 0.004792

72650 = P * 60.77131

P = $1195.47

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