Answer:
Part D)
Let x be the initial payment
So g=-0.75% every month
r=0.75%
n=35 months
P= $6500
P=x*(1+r)*(1-{(1+g)/(1+r)}^36)/(r-g)
6500=X*(1+0.75%)*(1-{(1-0.75%)/(1+0.75%)}^36)/(0.75%-(-0.75%))
X=$231.92
So payment occurs from 15 month today= 231.92*(1-0.75%)^15=$207.163
Part E)
Let x be the initial payment
So g=0.75% every month
r=0.75%
n=35 months
P= $6500
P=x+x*(1+g)*n/(1+i)
6500=x+x*(1+0.75%)*35/(1+0.75%)
X=180.55
So payment occurs from 15 month today= 180.55*(1+0.75%)^15=$201.97
Part D and E please As in Problem 1, once again, you are borrowing $6500 to...
help with finance
You don't need footnote 3 to solve it what
As in Problem 1, once again, you are borrowing $6500 to purchase a car. However, now the first payment is due immediately. There will be a total of 36 monthly payments (The first payment occurs immediately. The remaining 35 occur at the end of each of the following months). The advertised interest rate is 9% APR (therefore use a monthly discount rate of r-0.75% in your computations). The...
help!! I know this is
technically two problems but I ran out of question so please help
if you can. I don't have anymore questions left!
also posting problem 1 as an reference but just help to the top
2
As in Problem 1, once again, you are borrowing $6500 to purchase a car. However, now the first payment is due immediately. There will be a total of 36 monthly payments (The first payment occurs immediately. The remaining 35 occur...
you are borrowing $6500 to purchase a car. However, now the first payment is due immediately. There will be a total of 36 monthly payments (The first payment occurs immediately. The remaining 35 occur at the end of each of the following months growing by 2% per month). use an interest rate of r = 0%. Then answer the following questions: Part A) What is the size of the 6th (sixth) payment? Hint: The answer is not $140.79
Part D and E thank you
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