22. Phil can afford paying $200 a month for 5 years for a car loan. If...

Question

Question

Answer 1

Answer #1

Ans. (C) 9981.06 , is right answer.

Working note : monthly interest rate = 7.5%/12

=0.625%

Total months= 12*5

= 60 months

Monthly payment = $ 200

Present value annuity factor = 49.9053

Present value= 200 PVAF (0.625%,60)

=200*49.9053

= $9981.06

Answer 2

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