Solve the word problem. Luke mowed a lawn today to earn some extra money. He spent $2.10 on fuel and $4.45 on lunch. He charged
2 answers:
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Answer:
value of buyout is $4185.74
Step-by-step explanation:
given data
car worth = $25077
down payment = $3560
monthly payment = $336 = 336 × 6 = $2016 per semi annually
time = 5 year = 10 half yearly
rate = 4.04 %
to find out
value of final buyout
solution
we know here loan amount will be 25077 - 3560 = $21517
and we find present value first by formula that is
present value =
put here t = 10 and r =
so
present value =
present value = 18089.96
so
loan unpaid amount is here
loan unpaid amount = 21517 - 18089.96
loan unpaid amount = $3427.04
so
now we calculate value of buyout
that is express as
amount = principal ×
amount = 3427.04 ×
amount = 4185.74
so value of buyout is $4185.74