Dave Krug finances a new automobile by paying $5,500 cash and agreeing to make 20 monthly payments of $600 each payment to be made one month after the purchase. The loan bears interest at an annual rate of 12%. What is the cost of automobile? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round " Factor" to 4 decimal places.) Monthly Payment $ 600 X Table Values are Based on: Present Value of Loan n i = = + Table Factor $ Cash Down Payment 20 1% = 5,500 = Present Value of Loan $ Cost of the Automobile 18,711.40
Dave Krug finances a new automobile by paying $5,500 cash and agreeing to make 20 monthly payments of $600 each payment to be made one month after the purchase. The loan bears interest at an annual rate of 12%. What is the cost of automobile? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round " Factor" to 4 decimal places.) Monthly Payment $ 600 X Table Values are Based on: Present Value of Loan n i = = + Table Factor $ Cash Down Payment 20 1% = 5,500 = Present Value of Loan $ Cost of the Automobile 18,711.40
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Not sure what the table factor would be
Transcribed Image Text:Dave Krug finances a new automobile by paying $5,500 cash and agreeing to make 20 monthly payments of $600 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) (Use appropriate factor(s) from the tables provided. Round "Table
Factor" to 4 decimal places.)
Monthly Payment
$
600
Table Values are Based on:
Present Value of
Loan
n
X
=
i =
+
$
Table Factor
Cash Down
Payment
20
1%
5,500 =
Present Value of
Loan
$
Cost of the
Automobile
18,711.40
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