A computer retailer offers a paymentplan at 6.5% annual interest,compounded monthly. Customers canpay for a gaming system by monthlypayments of $156.20 for 1 year. Whatis the cost of the gaming system for acustomer paying cash at the time ofpurchase?a) $1721.06Ob) $1931.26O c) $1810.04d) $2010.26

Present Value is the current price of future value which will be received in near future at some…

Answered: A computer retailer offers a payment…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

A computer retailer offers a payment plan at 6.5% annual interest, compounded monthly. Customers can pay for a gaming system by monthly payments of $156.20 for 1 year. What is the cost of the gaming system for a customer paying cash at the time of purchase? O a) $1721.06 O b) $1931.26 c) $1810.04 O d) $2010.26
The following payment plans are offered on the purchase of an appliance. P375 8 monthly payments of P55. P100 cash down and 6 monthly payments of P50. Which payment plan would you choose if interest is 24% annually, compounded monthly, if you are the purchaser? Assume ordinary annuities where applicable.
A car dealer advertises the sale of a car model for a cash price of P880,000.00. If purchased on installment, the required down payment is 35% and balance payable in 18 equal monthly installments at an interest rate of 1.5% per month. How much will be the required monthly payments? O a P36,496.91 O b. P36,946.91 Oc P63,496.91 Od P36.469.91
A car dealer advertises the sale of a car model for a cash price of P280,000.00. If purchased on installment, the required down payment is 15%, and the balance payable in 18 equal monthly installments at an interest rate of 1.5% per month. How much will be the required monthly payments?
A washer-dryer combination can be purchased from a department store by making monthly credit card payments of $56.86 for two-and-a-halfyears. The first payment is due on the date of sale and interest is 22% compounded monthly. (a) What is the purchase price? (b) How much will be paid in installments? (c) How much is the cost of financing? (d) If an additional $9.00 per month is added to cover a service contract, what is the value of the entire contract on the date of sale?
Consider a credit card with a balance of $7000. You wish to pay off the credit card in each scenario. Calculate the following. Round your answer to the nearest cent, if necessary.a. The amount of a monthly payment within the time frame givenb. The total amount paid over the time period12. APR of 17.99% paid off within 1 year APR of 24% paid off within 3 years
If you buy a computer directly from the manufacturer for $2234 and agreed to pay it in 48 equal installments at 2.06% interest per month on the unpaid balance how much are your monthly payments? How much would your interest be paid?
A washer-dryer combination can be purchased from a department store by making monthly credit card payments of $37.17 for three-and-a-half years. The first payment is due on the date of sale and interest is 15% compounded monthly. (a) What is the purchase price? (b) How much will be paid in installments? (c) How much is the cost of financing? (d) If an additional $8.00 per month is added to cover a service contract, what is the value of the entire contract on the date of sale? a) The purchase price is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) b) The amount paid in installments will be $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) c) The cost of financing is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) d) The value of the entire contract on the date of sale is S
P. Use PMT to determine the regular payment amount, rounded to the nearest dollar. Your credit card has a balance of $4800 and an annual -nt interest rate of 12%. You decide to pay off the balance over three years If there are no further purchases charged to the card, a. How much must you pay each month? b. How much total interest will you pay? ked Scol a. The monthly payments are approximately S (Do not tound until the final answer Then round to the nearest dollar as needed) suon estion
A washer-dryer combination can be purchased from a department store by making monthly credit card payments of $56.55 for three-and-a-half years. The first payment is due on the date of sale and interest is 15% compounded monthly. (a) What is the purchase price? (b) How much will be paid in installments? (c) How much is the cost of financing? (d) If an additional $8.50 per month is added to cover a service contract, what is the value of the entire contract on the date of sale? a) The purchase price is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) b) The amount paid in installments will be $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) c) The cost of financing is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) d) The value of the entire contract on the date of sale is $…
A car dealer carries out the following calculations.What is the annual percentage rate? List price: $5,227.00 , Options: $1,625.00 , Destination charges: $200.00 , Subtotal : $7,052.00, Tax : $431.58 , Less trade-in: $2,932.00 , Amount to be financed: $4,691.03 , 10% interest for 48 months: $1,501.63 , Total: $6,192.66 , MONTHLY PAYMENT: $129.00
If you buy a computer directly from the manufacturer for $2,825 and agree to repay it in 48 equal installments at 1.94% interest per month on the unpaid balance, how much are your monthly payments? ..... Your monthly payment is $ (Round to two decimal places as needed.)

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