Question
Note : In a General Annuity the interest period does not match the payment period. That means that each question requires a two-step solution Step
Note :
In a General Annuity the interest period does not match the payment period.
That means that each question requires a two-step solution
Step 1 - find the equivalent interest rate to match the payment period. Do not round this interest rate
Step 2 - use the appropriate formula, Sn or An.
If you do not recognize the general annuity and skip Step 1, you will score 0% on Test 4.
A property was purchased for $5043.00 down and payments of $861.00
at the end of every month for 6 years. Interest is 4% per annum compounded annually.
What was the purchase price of the property? How much is the cost of financing?
Question content area bottom
Part 1
The purchase price of the property was
$enter your response here.
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Part 2
The cost of financing is
$enter your response here.
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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