The answer i think is rejected because the cash flow is not stable
Answer:
$800.71
Explanation:
In this question we use the PMT formula that is shown on the attachment below:
Data provided in the question
Present value = $38,000
Future value = $0
Rate of interest = 10% ÷ 12 months = 0.83333%
NPER = 60 months
The formula is shown below:
= PMT(Rate;NPER;-PV;FV;type)
The present value come in negative
So, after solving this, the monthly payments is $800.71
So, the dollar price of the jeans is the nominal variable, and the relative price is the real variable. The relative price of the jeans have been adjusted to inflation. The dollar price hasn't been adjusted for inflation, hence why it is the nominal variable (not adjusted for inflation).
Arch duke of Fran's Ferdinand. Hope this helps
The answer to this is 0.08 hope that this helped