Suppose you paid 5900 pesos as a down payment on a MIO SPORTY motorcycle. The remaining balance is to be paid in 6345 pesos at the end of each month for a year, with an annual interest of 14.52% compounded monthly. Determine the interest rate, present value and future value.

Q: Suppose you paid 5900 pesos as a down payment on a MIO SPORTY motorcycle. The remaining balance is…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: Suppose you paid 5900 pesos as a down payment on a MIO SPORTY motorcycle. The remaining balance is…

A: Answer: Calculation of the future value: Step 1: Calculation of the future value of 5900 pesos:…

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A: Loan amount (L) = $6000 Quarterly payment (Q) = $185.41 r = 5.8% per annum = 1.45% per quarter

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A:

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Q: Suppose you paid 5900 pesos as a down payment on a MIO SPORTY motorcycle. The remaining balance is…

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A: PV=FV11+rn=$70011+4.54×1004×3+$500011+4.54×1004×5=$612.062293+$3997.59977=$4609.66206=$4609.66

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Q: Suppose you paid 5900 pesos as a down payment on a MIO SPORTY motorcycle. The remaining balance is…

A: Present value can be found by the interest rate and given period by calculating the present value.

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