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both anwers are worng, please give me correct anwer! Present value of annuity =$2,3000.021(1+0.02)18 Present value of annuity =$2,009.67 Finally, we can calculate the monthly
both anwers are worng, please give me correct anwer!
Present value of annuity =$2,3000.021(1+0.02)18 Present value of annuity =$2,009.67 Finally, we can calculate the monthly payment by dividing the present value of the annuity by the number of monthly payments. Monthly payment = Present value of annuity / Number of monthly payments Monthly payment =18$2,009.67=$111.65 Therefore, the monthly payment necessary for Antonio to pay for his purchases is $111.65. Explanation: Therefore, the monthly payment necessary for Antonio to pay for his purchases is $111.65. Exercise 5-20 (Algo) Deferred annuities; solving for annuity amount [LO5-8, 5-9] On April 1, 2024, Antonio purchased appliances from the Acme Appliance Company for $2,300. In order to increase sales, Acme allows customers to pay in installments and will defer any payments for six months. Antonio will make 18 equal monthly payments, beginning October 1 , 2024. The annual interest rate implicit in this agreement is 24%. Monthlyrateofinterest=1224%=2% Nos of monthly payments =18= from 6th to 23rd period Explanation: Monthly payment = Cash price / Cumulative PV factor at 2% for 6 th to 23rd period =13.57874$1,500=$110.46 Exercise 5-20 (Algo) Deferred annuities; solving for annuity amount [LO5-8, 5-9] On April 1, 2024, Antonio purchased appliances from the Acme Appliance Company for $2,300. In order to increase sales, Acme allows customers to pay in installments and will defer any payments for six months. Antonio will make 18 equal monthly payments, beginning October 1, 2024. The annual interest rate implicit in this agreement is 24%. Required: Calculate the monthly payment necessary for Antonio to pay for his purchases. Note: Use tables, Excel, or a financial calculator. Do not round intermediate calculations. Round your final answers to nearest whole dollar amount. (FV of \$1, PV of \$1, FVA of \$1, PVA of \$1, FVAD of $1 and PVAD of \$1)Step by Step Solution
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