George buys a car every 6 years for ₱18,000. He trades in his current car to count as the 20% downvpayment. The rest is financed at a nominal 12% interest with monthly payments over 6 years. When the loan is paid off, he trades in the car as the “20%” down payment on the next car, which he finances the same way. Jeanette has similar tastes in cars, and the dealer will count her trade-in vehicle as worth 20%. She has paid cash for old cars in the past, so she now has ₱14,400 in cash for the other 80% cost of a new car. In 6 years, her vehicle will be worth the “20%” down payment. She wants to make a monthly deposit so that she has the other 80% of the vehicle’s cost in 6 years. Her savings account has a nominal annual interest rate of 6% with monthly compounding. What is George’s payment? What is Jeanette’s deposit? If Jeanette also deposits the difference in a retirement account that pays 9% nominal interest with monthly compounding, what does she have for retirement after 40 years? Please state/give the given and formulas. Without Microsoft Excel, Solutions manual only or compare the answer using ME and Solutions manual.
George buys a car every 6 years for ₱18,000. He trades in his current car to count as the 20% downvpayment. The rest is financed at a nominal 12% interest with monthly payments over 6 years. When the loan is paid off, he trades in the car as the “20%” down payment on the next car, which he finances the same way.
Jeanette has similar tastes in cars, and the dealer will count her trade-in vehicle as worth 20%. She has paid cash for old cars in the past, so she now has ₱14,400 in cash for the other 80% cost of a new car. In 6 years, her vehicle will be worth the “20%” down payment. She wants to make a monthly deposit so that she has the other 80% of the vehicle’s cost in 6 years. Her savings account has a nominal annual interest rate of 6% with monthly compounding.
What is George’s payment? What is Jeanette’s deposit? If Jeanette also deposits the difference in a retirement account that pays 9% nominal interest with monthly compounding, what does she have for retirement after 40 years?
Please state/give the given and formulas. Without Microsoft Excel, Solutions manual only or compare the answer using ME and Solutions manual.
Trending now
This is a popular solution!
Step by step
Solved in 6 steps
