Answer:
according to my calculations
Step-by-step explanation:
cheese
All you have to do is find the relationships between the top and bottom and then find how they all r in common
1. The amortization formula can tell you the present value if the string of payments is made at the end of the month.
A = P(i/n)/(1 -(1 +i/n)^(-nt))
where A is the payment (200), P is the present value, n is the number of compoundings per year (12), and t is the number of years (4).
200 = P(.034/12)/(1 -(1 +.034/12)^-48)
200 = P*0.0223115558
P = 200/0.0223115558 ≈ 8,963.96
This matches the selection ...
a) $8963.96
[Please note that an actual sale would probably require the first payment be made immediately, hence the present value would actually be $8,989.36.]
2. A financial calculator (HP-12c) computes the IRR at 3.889% (per quarter). Hence the annual rate of return is about
4*3.889% ≈ 15.55%
This matches selection ...
a.) 15.55%
