Problem IV: = 3.40183 annual installments of $800 beginning Jane bought an audio system and agreed to pay for the purchase by making fevereiro at the end of five years. The interest rate is 12%. one year from today plus a lump-suns payment of $1.500 In answering the following questions, use the following factors: Present value factor of an ordinary annuity of $1 (n=4, i=12%) = 3.03735 Present value factor of an annuity due of $1 (n=4, i=12%) Present value factor of $1 (n=5, i=12%) = 0.56743 Present value factor of $1 (n=4, i=12%) = 0.63552 1. What was the cost of the audio system? Solution: 2. Record the purchase in the books of Jane. Solution