Question
12) Your uncle offers to sell you his vintage Rolls Royce. He suggests a payment plan where you pay just $17,000 today, $7000 in 10
12)
Your uncle offers to sell you his vintage Rolls Royce. He suggests a payment plan where you pay just $17,000 today, $7000 in 10 months and $65,000 in exactly 19 months from today. If the interest rate is 14.1% per annum compounding monthly, what is the value of the offer (in present day dollars, rounded to the nearest dollar; dont show $ sign or commas)?
Answer:
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
