Pina Ltd. purchased a used truck from Trans Auto Sales Inc. Pina paid a $4,500 down payment and signed a note that calls for 36 payments of $1,047.00 at the end of each month. The stated rate of interest in the note is 4%. As an incentive for entering into the contract, Trans has agreed to forgive the first two payments under the lease. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. (a) What was the purchase price of the used truck excluding the incentive given? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answers to 2 decimal places, e.g. 5,275.25. Round interest rate per month to 4 decimal places, e.g. 1.5792%.) Purchase price of the used truck $
Pina Ltd. purchased a used truck from Trans Auto Sales Inc. Pina paid a $4,500 down payment and signed a note that calls for 36 payments of $1,047.00 at the end of each month. The stated rate of interest in the note is 4%. As an incentive for entering into the contract, Trans has agreed to forgive the first two payments under the lease. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. (a) What was the purchase price of the used truck excluding the incentive given? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answers to 2 decimal places, e.g. 5,275.25. Round interest rate per month to 4 decimal places, e.g. 1.5792%.) Purchase price of the used truck $
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
Problem 1PS
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Transcribed Image Text:Pina Ltd. purchased a used truck from Trans Auto Sales Inc. Pina paid a $4,500 down payment and signed a note that calls for 36
payments of $1,047.00 at the end of each month. The stated rate of interest in the note is 4%. As an incentive for entering into the
contract, Trans has agreed to forgive the first two payments under the lease.
Click here to view the factor table PRESENT VALUE OF 1.
Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.
(a)
What was the purchase price of the used truck excluding the incentive given? (For calculation purposes, use 5 decimal places as
displayed in the factor table provided. Round final answers to 2 decimal places, e.g. 5,275.25. Round interest rate per month to 4 decimal
places, e.g. 1.5792%.)
Purchase price of the used truck
LA
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