Question
You want to buy a brand new Tesla Model S car. The dealer offers you 3 payment options: (1)Make monthly payments of $2,325 over a
You want to buy a brand new Tesla Model S car. The dealer offers you 3 payment options:
(1)Make monthly payments of $2,325 over a period of 3 years at the end of every month.
(2)Pay $10,000 upfront, and $65,000 3 years from now.
(3)Make 3 equal payments at the end of every year so that the present value is equal to $85,253.
Annual interest rate is 12%.
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Financial And Managerial Accounting
Authors: Jerry J Weygandt, Paul D Kimmel, Jill E Mitchell
4th Edition
1119752620, 978-1119752622
