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Category > Accounting Posted 15 May 2017 My Price 3.00

You borrow $15,000 to buy a car

You borrow $15,000 to buy a car. The loan is to be paid off in monthly installments over five years at 12 percent interest annually. The first payment is due one month from today. If the present value of an ordinary annuity of $1 for 5 years @12% with monthly compounding is 44.955, what is the amount of each monthly payment?

a. $334

b. $456

c. $546

d. $680

Answers

(8)
Status NEW Posted 15 May 2017 10:05 AM My Price 3.00

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file 1494843659-Answer.docx preview (89 words )
Y-----------ou -----------bor-----------row----------- $1-----------5,0-----------00 -----------to -----------buy----------- a -----------car-----------. T-----------he -----------loa-----------n i-----------s t-----------o b-----------e p-----------aid----------- of-----------f i-----------n m-----------ont-----------hly----------- in-----------sta-----------llm-----------ent-----------s o-----------ver----------- fi-----------ve -----------yea-----------rs -----------at -----------12 -----------per-----------cen-----------t i-----------nte-----------res-----------t a-----------nnu-----------all-----------y. -----------The----------- fi-----------rst----------- pa-----------yme-----------nt -----------is -----------due----------- on-----------e m-----------ont-----------h f-----------rom----------- to-----------day-----------. I-----------f t-----------he -----------pre-----------sen-----------t v-----------alu-----------e o-----------f a-----------n o-----------rdi-----------nar-----------y a-----------nnu-----------ity----------- of----------- $1----------- fo-----------r 5----------- ye-----------ars----------- @1-----------2% -----------wit-----------h m-----------ont-----------hly----------- co-----------mpo-----------und-----------ing----------- is----------- 44-----------.95-----------5, -----------wha-----------t i-----------s t-----------he -----------amo-----------unt----------- of----------- ea-----------ch -----------mon-----------thl-----------y p-----------aym-----------ent-----------? -----------a. -----------$33-----------4 -----------b. -----------$45-----------6 -----------c. -----------$54-----------6 -----------d. -----------$68-----------0 -----------Ans-----------wer----------- Â-----------  -----------Amo-----------unt----------- of----------- mo-----------nth-----------ly -----------ins-----------tal-----------lme-----------nt=----------- Am-----------oun-----------t t-----------o b-----------e b-----------orr-----------owe-----------d/ -----------Pre-----------sen-----------t
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