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Smith needs to purchase a car with price $18,000 right now. He wants to make annual payment at the end of each year for 5
Smith needs to purchase a car with price $18,000 right now. He wants to make annual payment at the end of each year for 5 years, following effective interest rate 8% convertible annually. Moreover, he agreed to pay $3,256 for annual payment in order to buy a car. However, he also needs to pay a down payment X in the beginning of the year just prior purchasing the car (DP is made at time 0). Calculate the amount of down payment X? (please rounding to the nearest integer).
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