Question
What is the price of a car if the loan from the bank to buy it involves annual payments of $6,100.00 to the bank for
What is the price of a car if the loan from the bank to buy it involves annual payments of $6,100.00 to the bank for 5 years at an annual interest rate of 11.79 percent with the first annual payment made to the bank in 1 year and a special payment of $4,110.00 to the bank in 3 years?
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To solve this problem we can use the formula for the present value of an annuity which is PV P 1 1 r...
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
