You need to buy a new laundry center with a price of $ 22,000 because the one you had no longer works and has no repair, at the moment you do not have the cash available to buy it, so you went to a department store to buy it on credit, The store offers you to pay for the laundry center in 24 months with an annual rate of 17%. What is the amount you will have to pay monthly?

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
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You need to buy a new laundry center with a price of $ 22,000 because the one you had no longer works and has no repair, at the moment you do not have the cash available to buy it, so you went to a department store to buy it on credit, The store offers you to pay for the laundry center in 24 months with an annual rate of 17%. What is the amount you will have to pay monthly?

 

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Note2: If it can be done in excel it is better

Expert Solution
Step 1

PV = 22000

FV = 0

N = 24

rate = 17%/12

use PMT function in Excel

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