you buy a stove. If the price of 78699 is cash a) How much will you pay each month if the rate charged is 12% per year, compounded monthly and you wish to pay in one year? b) If you decide to save a year before purchasing the product and be able to buy it in cash, how much should you save monthly considering the same interest rate and its monthly capitalization?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 5MC: If you are saving the same amount each month in order to buy a new sports car when the new models...
Question
you buy a stove.
If the price of 78699 is cash
a) How much will you pay each month if the rate charged is 12% per year, compounded monthly and you wish to pay in one year?
b) If you decide to save a year before purchasing the product and be able to buy it in cash, how much should you save monthly considering the same interest rate and its monthly
capitalization?
Transcribed Image Text:you buy a stove. If the price of 78699 is cash a) How much will you pay each month if the rate charged is 12% per year, compounded monthly and you wish to pay in one year? b) If you decide to save a year before purchasing the product and be able to buy it in cash, how much should you save monthly considering the same interest rate and its monthly capitalization?
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