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You would like to purchase a car with a negotiated price of $39,000, and the dealer offers financing over a 4-year period at 6%. If repayments are to be made monthly, at the end of each month, what would be the monthly payments? Calculate using (a) financial calculator or (b) Excel function PV. (Round answer to 2 decimal places, e.g. 52.75. Round interest rate per month to 4 decimal places, e.g. 1.2597%.) Monthly payments $

You would like to purchase a car with a negotiated price of $39,000, and the dealer offers financing over a 4-year period at 6%. If repayments are to be made monthly, at the end of each month, what would be the monthly payments? Calculate using (a) financial calculator or (b) Excel function PV. (Round answer to 2 decimal places, e.g. 52.75. Round interest rate per month to 4 decimal places, e.g. 1.2597%.) Monthly payments $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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You would like to purchase a car with a negotiated price of $39,000, and the dealer offers financing over a 4-year period at 6%. If repayments are to be made monthly, at the end of each month, what would be the monthly payments? Calculate using (a) financial calculator or (b) Excel function PV. (Round answer to 2 decimal places, e.g. 52.75. Round interest rate per month to 4 decimal places, e.g. 1.2597%.) Monthly payments
Transcribed Image Text:You would like to purchase a car with a negotiated price of $39,000, and the dealer offers financing over a 4-year period at 6%. If repayments are to be made monthly, at the end of each month, what would be the monthly payments? Calculate using (a) financial calculator or (b) Excel function PV. (Round answer to 2 decimal places, e.g. 52.75. Round interest rate per month to 4 decimal places, e.g. 1.2597%.) Monthly payments
Expert Solution
Step 1

Given: -

Price (PV): - $39,000

Number of payments (Nper): - 4 years*12= 48

Rate (r): - 6%= 6/12=0.50%

Payment: - monthly

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