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Murrr4er [49]
3 years ago
14

Elmer took out an 18-month loan for $1400 at an appliance store to be paid

Mathematics
2 answers:
Dominik [7]3 years ago
7 0

Answer:

N= 9, PV= 1658

Step-by-step explanation:

Mamont248 [21]3 years ago
7 0

Answer:

D) N=9; 1% = 22.8; PV=-1658.42; PMT=; FV=0; P/Y=12; C/Y=12;  PMT:END

Step-by-step explanation:

Since the loan offers no payments during the first 9 months, then N = 9 months instead of 18 months.

The interest rate remains the same = 22.8%

The present value of the loan = the future value of the loan's principal on the ninth month = -$1,400 x [1 + (22.8% x 9/12)]⁹ = -$1,400 x 1.184 = -$1658.42

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