$MathMaster logo$

MathMaster

Home
general
a person purchases a certain product by paying 8 successive monthly installments of 3 400 00 each paying the first 5 month

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

likes

718 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?

$Expert avatar$

4.4

104 Answers

P = 3400

r = \frac{0.04}{12}

n = 8

Step 1: Calculate the present value (cash price) using the annuity due formula:

PV = 3400 \times \frac{1 - (1 + \frac{0.04}{12})^{-8}}{\frac{0.04}{12}}

Step 2: Calculate \( (1 + \frac{0.04}{12})^{-8} \):

(1 + \frac{0.04}{12})^{-8} \approx 0.969198

Step 3: Plug in the value:

PV = 3400 \times \frac{1 - 0.969198}{0.003333}

PV = 3400 \times \frac{0.030802}{0.003333}

PV \approx 3400 \times 9.240

PV \approx 31,464

Step 4: Monthly payment is given as:

\text{Monthly Payment} = 3400

Final Result:

PV \approx 31,464.00

\text{Monthly Payment} = 3400.00

Frequently asked questions (FAQs)

What is the measure of a triangle's angle formed by the intersection of two angle bisectors measuring 30 degrees and 45 degrees?

+

Math question: Calculate the value of x in log(x) = 2.5

+

Find the roots of the cubic equation x^3 - 5x^2 + 3x - 2 = 0.

+

New questions in Mathematics

How to find the value of x and y which satisfy both equations x-2y=24 and 8x-y=117

A normal random variable x has a mean of 50 and a standard deviation of 10. Would it be unusual to see the value x = 0? Explain your answer.

a to the power of 2 minus 16 over a plus 4, what is the result?

calculate the derivative by the limit definition: f(x) = 6x^3 + 2

Let the vectors be u=(-1,0,2) , v=(0,2,-3) , w=(2,2,3) Calculate the following expressions a)<u,w> b) <2u- 5v,3w>

For a temperature range between -3 degrees Celsius to 5 degrees Celsius, what is the temperature range in degrees Farenheight

The ratio of tomatoes to red apples is 2:5. If there are 20 tomaoes in the garden, how many red apples are there?

(6.2x10^3)(3x10^-6)

What is the appropriate measurement for the weight of an African elephant?

Primes are numbers divisible only by 1 and themselves; There are infinitely many prime numbers and the first ones are 2, 3, 5, 7, 11, 13, 17, 19, 23, .... Consider a 12-sided die, with the faces numbered from 1 to 12. Out of 4 rolls, the probability that only the first three numbers are primes is:

User Before the election, a poll of 60 voters found the proportion who support the Green candidate to be 25%. Calculate the 90% confidence interval for the population parameter. (Give your answers as a PERCENTAGE rounded to TWO DECIMAL PLACES: exclude any trailing zeros and DO NOT INSERT THE % SIGN) Give the lower limit of the 90% confidence interval Give the upper limit of the 90% confidence interval

With the aim of identifying the presence of the feline leukemia virus (FeLV), blood samples were collected from cats sent to a private veterinary clinic in the city of Belo Horizonte. Among the animals treated, it was possible to observe that age followed a Normal distribution with a mean of 4.44 years and a standard deviation of 1.09 years. Considering this information, determine the value of the third quartile of the ages of the animals treated at this veterinary clinic. ATTENTION: Provide the answer to exactly FOUR decimal places

How much does the average college student spend on food per month? A random sample of 50 college students showed a sample mean $670 with a standard deviation $80. Obtain the 95% confidence interval for the amount college students spend on food per month.

(a) List the set of possible rational zeros of the polynomial function F(x) = 2x3 - 11x2 + 13x - 4. (b) Find all rational zeros of F(x). Only do part B

We have received our p&l statement back from accounts. The board has asked for an innovation hub. What items should we prioritise reviewing to decide if we can afford an innovation hub?

The mean of 4 numbers is 5 and the mean of 3 different numbers is 12. What is the mean of the 7 numbers together? Produce an algebraic solution. Guess and check is acceptable.

Let I be an interval and let f : I → R be a continuous function such that f(I) ⊂ Q. Show (in symbols) that f is constant.

In a school playground When going out for recess, 80 men and 75 women coexist, the Patio measures 10 meters For 40 meters (what will be the population density in the break

Let f(x)=-1/2x+5 evaluate f(-6)