An employee is earning $ 18,000 a month and he can only afford to purchase a car which will require a down payment of $ 80,000 and a monthly amortization of 30% of his monthly salary. What would be the maximum cash value of a car he can purchase if the seller will agree to a down payment of $ 80,000 and the balance payable in four years at 12% per year payable in monthly basis. The first payment will be due at the beginning of the first month. Include cashflow diagram and formulas.
An employee is earning $ 18,000 a month and he can only afford to purchase a car which will require a down payment of $ 80,000 and a monthly amortization of 30% of his monthly salary. What would be the maximum cash value of a car he can purchase if the seller will agree to a down payment of $ 80,000 and the balance payable in four years at 12% per year payable in monthly basis. The first payment will be due at the beginning of the first month. Include cashflow diagram and formulas.
Chapter2: Loads On Structures
Section: Chapter Questions
Problem 1P
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An employee is earning $ 18,000 a month and he can only afford to purchase a car which will require a down payment of $ 80,000 and a monthly amortization of 30% of his monthly salary. What would be the maximum cash value of a car he can purchase if the seller will agree to a down payment of $ 80,000 and the balance payable in four years at 12% per year payable in monthly basis. The first payment will be due at the beginning of the first month. Include cashflow diagram and formulas.
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