Question

Derek borrows $325,259.00 to buy a house. He has a 30-year mortgage with a rate of 4.08%. After making 147.00 payments, how much does he owe on the mortgage?

Derek plans to buy a $25,844.00 car. The dealership offers zero percent financing for 57.00 months with the first payment due at signing (today). Derek would be willing to pay for the car in full today if the dealership offers him $____ cash back. He can borrow money from his bank at an interest rate of 4.12%.

Answer 1

PVOrdinary Annuity = C*[(1-(1+i/100)^(-n))/(i/100)]

C = Cash flow per period

i = interest rate

n = number of payments

325259= Cash Flow*((1-(1+ 4.08/1200)^(-30*12))/(4.08/1200))

Cash Flow = 1567.87

PVOrdinary Annuity = C*[(1-(1+i/100)^(-n))/(i/100)]

C = Cash flow per period

i = interest rate

n = number of payments

PV= 1567.87*((1-(1+ 4.08/1200)^(-17.75*12))/(4.08/1200))

PV = 237344.18

Please ask remaining parts seperately, questions are unrelated