Answer:
because people have different opinions on nails and screws
Explanation:
Answer:
$7,778.35
Explanation:
At year 3, the final payment of the remaining balance is equal to the present worth P of the last three payments.
First, calculate the uniform payments A:
A = 12000(A/P, 4%, 5)
= 12000(0.2246) = 2695.2 (from the calculator)
Then take the last three payments as its own cash flow.
To calculate the new P:
P = 2695.2 + 2695.2(P/A, 4%, 2) = 2695.2 + 2695.2(1.886) = 7778.35
Therefore, the final payment is $7,778.35