Chet just bought an $80,000 BMW and now has regular annual payments of $8,000 per year starting one year from now. Assuming an interest rate of 5%, how long will it take for Chet to pay off the car? Choose the closest. a) 14.21 years b) 10.15 years c) 7.15 years d) 15.73 years
Chet just bought an $80,000 BMW and now has regular annual payments of $8,000 per year starting one year from now. Assuming an interest rate of 5%, how long will it take for Chet to pay off the car? Choose the closest. a) 14.21 years b) 10.15 years c) 7.15 years d) 15.73 years
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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Chet just bought an $80,000 BMW and now has regular annual payments of $8,000 per year starting one year from now. Assuming an interest rate of 5%, how long will it take for Chet to pay off the car? Choose the closest.
a) 14.21 years
b) 10.15 years
c) 7.15 years
d) 15.73 years
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