Suppose you want to buy a car today. If you can afford payments of $493 per...

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Answer 1

Answer #1

1

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

C = Cash flow per period

i = interest rate

n = number of payments

PV= 493*((1-(1+ 3/1200)^(-7*12))/(3/1200))

PV = 37310.89

2

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

C = Cash flow per period

i = interest rate

n = number of payments

33317= Cash Flow*((1-(1+ 5/1200)^(-5*12))/(5/1200))

Cash Flow = 628.73

Please ask remaining parts seperately, questions are unrelated, I have done one bonus

Answer 2

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