Present Value of Annuity = Periodic Payment * [ 1- (1+ Rate of Interest)^(- TIme) ] / Rate of Interest
= $ 200 * [ 1- (1+18%/12)^(-4*12)]/ (18%/12)
= $ 6,808.51
Answer: $ 6,808.51
willie can afford monthly car payments of $200 for four years. what is the most expensive...
You are looking to buy a car. You can afford $520 in monthly payments for four years. In addition to the loan, you can make a $1,700 down payment. If interest rates are 8.75 percent APR, what price of car can you afford (loan plus down payment)?
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22. Phil can afford paying $200 a month for 5 years for a car loan. If the interest rate is 7.5 percent per year compounded monthly, how much can he afford to borrow to purchase a car? Phil will make the loan payments at the end of each month. A. $8,750.00 B. $9,348.03 C. $9,981.06 D. $10,266.67 E. $10,400.00
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