Exercise B-9 (Algo) Present value of an annuity LO P3 Dave Krug finances a new automobile by paying $6,200 cash and agreeing to make 30 monthly payments of $440 each, the first payment to be made one month after the purchase. The loan bears interest at an annual rate of 12%. What is the cost of the automobile? (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places. Monthly Payment Table Factor $ 440 25.8077 $ Table Values are Based on: n = 30 i = 1% Present Value of Loan 11,355,388.00 × Present Value of Loan $ 11,355,388.00 $ Cash Down Payment 6,200 $ Cost of the Automobile 17,555,388.00 × *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
Exercise B-9 (Algo) Present value of an annuity LO P3 Dave Krug finances a new automobile by paying $6,200 cash and agreeing to make 30 monthly payments of $440 each, the first payment to be made one month after the purchase. The loan bears interest at an annual rate of 12%. What is the cost of the automobile? (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places. Monthly Payment Table Factor $ 440 25.8077 $ Table Values are Based on: n = 30 i = 1% Present Value of Loan 11,355,388.00 × Present Value of Loan $ 11,355,388.00 $ Cash Down Payment 6,200 $ Cost of the Automobile 17,555,388.00 × *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
Chapter9: Obtaining Affordable Housing
Section: Chapter Questions
Problem 5DTM
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Transcribed Image Text:Exercise B-9 (Algo) Present value of an annuity LO P3
Dave Krug finances a new automobile by paying $6,200 cash and agreeing to make 30 monthly payments of $440 each, the first
payment to be made one month after the purchase. The loan bears interest at an annual rate of 12%. What is the cost of the
automobile? (PV of $1, FV of $1, PVA of $1, and FVA of $1)
Note: Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.
Monthly Payment
Table Factor
$
440
25.8077
$
Table Values are Based on:
n
=
30
i
=
1%
Present Value of
Loan
11,355,388.00 ×
Present Value of Loan
$
11,355,388.00
$
Cash Down
Payment
6,200
$
Cost of the
Automobile
17,555,388.00 ×
*Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
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