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Question 1 XYZ Construction Inc. wants to purchase a new pick-up truck. The price for the new truck is $41,370. The dealer allows XYZ to trade-in the old truck for $7,070. XYZ can payback the remaining balance through a 4-year payment plan. Given the agreed interest rate is 3% How much is the monthly payment?

Question 1 XYZ Construction Inc. wants to purchase a new pick-up truck. The price for the new truck is $41,370. The dealer allows XYZ to trade-in the old truck for $7,070. XYZ can payback the remaining balance through a 4-year payment plan. Given the agreed interest rate is 3% How much is the monthly payment?

Essentials Of Investments
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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Question 1 XYZ Construction Inc. wants to purchase a new pick-up truck. The price for the new truck is $41,370. The dealer allows XYZ to trade-in the old truck for $7,070. XYZ can payback the remaining balance through a 4-year payment plan. Given the agreed interest rate is 3% How much is the monthly payment? Question 2 If XYZ can only pay $816 monthly, and the dealer does not accept trade-in, given 3% interest rate, how much of the new pick-up truck can XYZ afford?
Transcribed Image Text:Question 1 XYZ Construction Inc. wants to purchase a new pick-up truck. The price for the new truck is $41,370. The dealer allows XYZ to trade-in the old truck for $7,070. XYZ can payback the remaining balance through a 4-year payment plan. Given the agreed interest rate is 3% How much is the monthly payment? Question 2 If XYZ can only pay $816 monthly, and the dealer does not accept trade-in, given 3% interest rate, how much of the new pick-up truck can XYZ afford?
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