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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,
Please find the detailed answer as follows:
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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