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Your friend offers to sell you her car for $30,000 today. You agree to pay $14,000...

Your friend offers to sell you her car for $30,000 today. You agree to pay $14,000 today but the balance in exactly 17 months when you expect to have some cash. How much will you need to pay your friend in 17 months if the interest rate is 8% per annum compounding monthly?

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Answer #1

solution: interest rate per month:8%/12 number of period in month-17 Amount borrowed 30000-14000 FV Future value PV Present value r annual compound growth rate n number of period 16000 FV-PV* (1+r)An FV-16000 (1+(0.08/12»-17 FVAmount to be paid in 17 months 17,913.34 Sheel 105 Sheel 106 Sheetl 107 Sheet1 108 Sheet1 109Sheet1110 Sheeti 111 Sheet1112 ENG TOll US 07/01/2019 11:04

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