Homework Answers
please find below the solution.. let me know if you need any clarification..
| Computation of equal monthly payment | |||
| we have to use financial calculator to solve this | |||
| Put in calculator - | |||
| FV | 0 | ||
| PV | =-(20000-4000) | -16000 | |
| I | 7% | ||
| N | 48 | ||
| Compute PMT | $1,165.29 | ||
| therefore monthly payment = | $1,165.29 | ||
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(a) paying the balance with
end-of-month payments over the next five years at
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of the car, the same down payment of $5,000, and bank financing of
the balance after down payment, over 5 years with end-of-month
payments at
12%
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