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# Assume you just purchased a car and agreed to pay \$450 per month for

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Assume you just purchased a car and agreed to pay \$450
per month for it for 50 months. Assuming you are paying
1% interest per month, what is the price of the car? \$6,500
\$17,638 \$22,688 \$9,285
Solution
Hi,
Nper = 50 (indicates the period)
PMT = 450 (indicates the amount of payment)
PV = ? (indicates the present value)
FV = 0 (indicates the future/face value)
Rate = 1% (indicates the rate of interest)
Price of the Car = PV(Rate,Nper,PMT,FV) =
PV(1%,50,450,0) = \$17638
Option B (\$17638) is the correct answer.
Thanks.

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Assume you just purchased a car and agreed to pay \$450 per month for it for 50 months. Assuming you are paying 1% interest per month, what is the price of the car? \$6,500 \$17,638 \$22,688 \$9,285 Solution Hi, Please find the detailed answer as follows : Nper = 50 (indicates the period) PMT = 450 (in ...
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