the length of a rectangular room is 5 yards and the width is 4 yards if carpet costs 20 dollars per square yard how much will th
2 answers:
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Answer:
Since the monthly payment with rebate is lower than monthly payment for 0% financing, I will choose the $3,926 rebate
Step-by-step explanation:
Price of the automobile = $26,706
There is 0% financing for 60 months
Rate = 6.3%
Monthly payment for 0% financing = 26706 ÷ 60 = $445.1
Rebate = $3,926
Monthly payment for $3926 rebate
Formula for calculating present value ( PV) for Annuity payment
...................(1)
P = monthly payment
r = Rate per period = 6.3%/12
r =(6.3/100)/12 = 6.3/1200
r = 0.00525
Present value, PV = 26706 - 3926 = $22780
number of payments, n = 60
Substituting these values into the equation (1) above
P = $443.59
Note : From calculations, Monthly payment with rebate = $443.59, while monthly payment for 0% financing = $445.1
Since the monthly payment with rebate is lower than monthly payment for 0% financing, I will choose the $3,926 rebate