Dave Krug finances a new automobile by paying $5,500 cash and agreeing to make 20 monthly payments of $600 each, the f 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 Answer is complete but not entirely correct. $ 600 Table Values are Based on: n i X = Table Factor Present Value of Loan 22.0190 X = $ 20✔ 1%✓ 13,211.40 x
Dave Krug finances a new automobile by paying $5,500 cash and agreeing to make 20 monthly payments of $600 each, the f 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 Answer is complete but not entirely correct. $ 600 Table Values are Based on: n i X = Table Factor Present Value of Loan 22.0190 X = $ 20✔ 1%✓ 13,211.40 x
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
what would the formula be to solve for the table value? the table value is what i need to solve the problem
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:
n
i
Present Value of
Loan
$
X Answer is complete but not entirely correct.
13,211.40
X
=
=
+
$
Table Factor
22.0190 X
20
1%
Cash Down
Payment
5,500
=
=
Present Value of
Loan
$
$
13,211.40 x
Cost of the
Automobile
18,711.40 x
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