Question
A person purchases a certain product by paying 8 successive monthly installments of $3,400.00 each, paying the first 5 months after the purchase. What is the cash price of the product, if an interest rate of 4% is being charged bi-monthly, capitalized each month? How much is paid each month?
144
likes718 views
Answer to a math question A person purchases a certain product by paying 8 successive monthly installments of $3,400.00 each, paying the first 5 months after the purchase. What is the cash price of the product, if an interest rate of 4% is being charged bi-monthly, capitalized each month? How much is paid each month?
Adonis
4.4106 Answers
Step 1: Calculate the present value (cash price) using the annuity due formula:
Step 2: Calculate \( (1 + \frac{0.04}{12})^{-8} \):
Step 3: Plug in the value:
Step 4: Monthly payment is given as:
Final Result:
Frequently asked questions (FAQs)
Question: What is the integral of ∫ ( e^x + cos(x) + 3x^2 ) dx over the interval [0, 1]?
+
Math question: What is the largest possible value of the function f(x) = x^3 - 6x^2 + 9x - 2 on the closed interval [0, 4]?
+
Math Question: Find the absolute extrema of f(x) = x^3 - 6x^2 + 9x on the interval [0, 4].
+
New questions in Mathematics