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A couple buys $8000 worth of furniture and takes advantage of the furniture company's "don't pay a cent for 1 year" plan. Exactly one year after buying the furniture, they make the first of 18 monthly payments of R to pay for the furniture. If the interest rate is J12 = 12%, what is R? You are given a1810.01 = 16.39827. A. $544.29 B. $549.73 C. $555.23 D. $577.77

A couple buys $8000 worth of furniture and takes advantage of the furniture company's "don't pay a cent for 1 year" plan. Exactly one year after buying the furniture, they make the first of 18 monthly payments of R to pay for the furniture. If the interest rate is J12 = 12%, what is R? You are given a1810.01 = 16.39827. A. $544.29 B. $549.73 C. $555.23 D. $577.77

Essentials Of Investments
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
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the correct answer is 544.29

 

A couple buys $8000 worth of furniture and takes advantage of the furniture company's "don't pay a cent for 1 year" plan. Exactly one year after buying the furniture, they make the first of 18 monthly payments of R to pay for the furniture. If the interest rate is 12 = 12%, what is R? You are given a1810.01 = 16.39827. A. $544.29 B. $549.73 C. $555.23 D. $577.77
Transcribed Image Text:A couple buys $8000 worth of furniture and takes advantage of the furniture company's "don't pay a cent for 1 year" plan. Exactly one year after buying the furniture, they make the first of 18 monthly payments of R to pay for the furniture. If the interest rate is 12 = 12%, what is R? You are given a1810.01 = 16.39827. A. $544.29 B. $549.73 C. $555.23 D. $577.77
7. A couple buys $8000 worth of furniture and takes advantage of the furniture company's "don't pay a cent for 1 year" plan. Exactly one year after buying the furniture, they make the first of 18 monthly payments of R to pay for the furniture. If the interest rate is i12 = 12%, what is R? You are given a18]0.01 = 16.39827 These are the steps to answer the question Find the PV of R payments for 18 periods (R is not known) (Say A) The PV of A for 11 periods (you are starting to pay from the 12th period) is equal to 8000. Find R.
Transcribed Image Text:7. A couple buys $8000 worth of furniture and takes advantage of the furniture company's "don't pay a cent for 1 year" plan. Exactly one year after buying the furniture, they make the first of 18 monthly payments of R to pay for the furniture. If the interest rate is i12 = 12%, what is R? You are given a18]0.01 = 16.39827 These are the steps to answer the question Find the PV of R payments for 18 periods (R is not known) (Say A) The PV of A for 11 periods (you are starting to pay from the 12th period) is equal to 8000. Find R.
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