1. Business
  2. Finance
  3. help with finance you dont need footnote 3 to solve...

Question: help with finance you dont need footnote 3 to solve...

Question details

As in Problem 1, once again, you are borrowing $6500 to purchase a car. However, now the first payment is due immediately. There will be a total of 36 monthly payments (The first payment occurs immediately. The remaining 35 occur at the end of each of the following months). The advertised interest rate is 9% APR (therefore use a monthly discount rate of r-0.75% in your computations). The payments will all be equal in size HINT: This is an annuity due problem. Make sure you understand the discussion in the book, especially Example 5B - paying attention to Footnote 3 (which applies to Parts B, C, and D). Also work the Annuity Due problems at the end of the chapter before you work this problem Part A) What is the size of the first payment? (which vou pay immediately) Part B)Now assume that the size of the car payments increases by 2% every month. size of the first payment? What is the Part C) Now assume that the size of the car payments decreases by 2% every month. What is the size of the 4th (fourth) payment? Hint: The answer is NOT $259.45 Part D) Now assume that the size of the car payments decrease by 0.75% every month. What is the size of the payment that occurs 15 months from today? Part E) Now assume that the size of the car payments increases by 0.75% every month. What is the size of the payment that occurs 15 months from today?help with finance

You don't need footnote 3 to solve it what

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution