4. Your car loan requires payments of $200 per month for the first year and payments of $400 per month during the second year. T
1 answer:
Answer:
present value = $6,246.34
Explanation:
given data
loan payment 1st year = $200 per month
loan payment 2nd year = $400 per month
annual interest rate = 12%
solution
we get here present value of 2 year loan that is express as
present value of 1st and 2
present value = present value of 1st + present value of 2nd year
we get here
present value = { $200 × -
+ $400 ×
-
} ÷ 1.0112
present value = $6,246.34
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Based on the amount that she invests monthly, the interest rate, and the targeted retirement amount, the number of payments would be 42 payments.
<h3>How many payments should the young professional make?</h3>The number of payments will be the same as the number of months/ periods because that is the frequency of payment.
The number of payments can therefore be found by the NPER formula on a Spreadsheet:
Rate = 11.5%
Pmt = -900
PV = Empty
FV = 730,000
Number of payments is:
= 41.76
= 42 payments.
Find out more on number of periods of payments at brainly.com/question/6819835.
Answer:
The correct solution is "6.09%".
Explanation:
Given:
Nominal rate,
= 6%
or,
= 0.06
As we know,
⇒
By substituting the values, we get
(%)