Question
Hats Down has just rented a warehouse and must pay a monthly rent of $12,000 for the next 9 years. The first payment is due
Hats Down has just rented a warehouse and must pay a monthly rent of $12,000 for the next 9 years. The first payment is due today. What is the value of the payments today if the APR is 6.36%, compounded monthly?
r = 6.36%/12 = 0.53%
Please explain the Formula. if the interest is 6.36% should we be putting it in decimal form .0636/12?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
PV of annuity due can be computed by using the formula A 1 r 1 rn 1 r 1 rn Where A is t...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Contemporary Business Mathematics with Canadian Applications
Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs
10th edition
133052311, 978-0133052312
