1a. | Present Value | = | $540 X PVIFA (2%, 25) + $12000 X PVIF (2%, 25) | |
= | [$540 X 19.5235] + [$12000 X 0.6095] | |||
= | $ 17,856.69 | |||
1b. | Option b | |||
Since $16507 is lesser amount than present value of $17857 |
You have decided to buy a used car. The dealer has offered you two options: (FV...
You have decided to buy a used car. The dealer has offered you two options: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) a. Pay $660 per month for 25 months and an additional $12,000 at the end of 25 months. The dealer is charging an annual interest rate of 24%. b. Make a one-time payment of $18,850, due when you purchase the car. 1-a. Determine how...
You have decided to buy a used car. The dealer has offered you two options: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) a. Pay $630 per month for 25 months and an additional $12,000 at the end of 25 months. The dealer is charging an annual interest rate of 24%. b. Make a one-time payment of $18,264, due when you purchase the car, 1-a. Determine how...
You have decided to buy a used car. The dealer has offered you two options: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) a. Pay $610 per month for 30 months and an additional $12,000 at the end of 30 months. The dealer is charging an annual interest rate of 24%. b. Make a one-time payment of $18,937, due when you purchase the car. 1-a. Determine how...
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You have decided to buy a used car. The dealer has offered you two options: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) a. Pay $610 per month for 30 months and an additional $12,000 at the end of 30 months. The dealer is charging an annual interest rate of 24%. b. Make a one-time payment of $18,937, due when you purchase the car. 1-a. Determine how...
You have decided to buy a used car. The dealer has offered you two options: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) a. Pay $660 per month for 25 months and an additional $12,000 at the end of 25 months. The dealer is charging an annual interest rate of 24%. b. Make a one-time payment of $18,850, due when you purchase the car. 1-a. Determine how...
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You have decided to buy a used car. The dealer has offered you two options: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) Pay $660 per month for 25 months and an additional $10,000 at the end of 25 months. The dealer is charging an annual interest rate of 24%. Make a one-time payment of $18,980, due when you purchase the car. 1-a. Determine how much cash...
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