2. You bought a $30,000.00 machine with $6,000.00 down payment and agreed topay for the rest at 1% monthly interest for the next 4 years.а.What is your monthly payment?Suppose, while making the 30th payment, you decided to pay thevendor the rest of money you owe in one single payment at the same time.How much will that payment be?b.

The question is based on the concept of Financial Management. Annuity refers to the amount of equal…

2. You bought a $30,000.00 machine with $6,000.00 down payment and agreed to pay for the rest at 1% monthly interest for the next 4 years. What is your monthly payment? а. Suppose, while making the 30th payment, you decided to pay the vendor the rest of money you owe in one single payment at the same time. b. How much will that pavment be?

2. You bought a $30,000.00 machine with $6,000.00 down payment and agreed to pay for the rest at 1% monthly interest for the next 4 years. What is your monthly payment? а. Suppose, while making the 30th payment, you decided to pay the vendor the rest of money you owe in one single payment at the same time. b. How much will that pavment be?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 19PROB

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You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
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