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
Adonis
4.4
102 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 an angle bisector if angle A measures 60 degrees?
+
What are the characteristics of the hyperbola function with a transverse axis length of 8, a conjugate axis length of 6, and a center at the origin?
+
What is the value of log10(1000) + 3log10(10) - log10(100) - log10(1)?
+
New questions in Mathematics
How much volume of water in MegaLiters (ML) is required to irrigate 30 Hectare crop area with depth of 20mm?
Let 𝑢 = 𝑓(𝑥, 𝑦) = (𝑒^𝑥)𝑠𝑒𝑛(3𝑦). Check if 9((𝜕^2) u / 𝜕(𝑥^2)) +((𝜕^2) 𝑢 / 𝜕(𝑦^2)) = 0
If we have the sequence: 3, 6, 12, 24 Please determine the 14th term.
Let the vectors be u=(-1,0,2) , v=(0,2,-3) , w=(2,2,3) Calculate the following expressions a)<u,w> b) &lt;2u- 5v,3w&gt;
8x²-30x-10x²+70x=-30x+10x²-20x²
Eight acts are scheduled to perform in a variety show how many different ways are there to schedule their appearances show your work
5) A family with a father, mother and 3 children must sit on five chairs in a row and the only restriction is that the mother must be at one end. In how many different ways can they be seated?
A client did not advance L 10,000 for the rental of a parking area and it corresponds to 4 months, of which 2 months were consumed
Determine the absolute extrema of the function 𝑓(𝑥)=𝑥3−18𝑥2 96𝑥 , on the interval [1,10]
what is the annual rate on ​$525 at 0.046​% per day for 3 months?
7/6-(-1/9)
Identify a pattern in the list of numbers.Then use this pattern to find the next number. 37,31,25,19,13
By direct proof, how can you prove that “The sum of any three consecutive even integers is always a multiple of 6”.
I need to know what 20% or £3292.75
The sum of two numbers is 144. Double the first number minus thrice the second number is equal to 63. Determine the first two numbers.
In the telephone exchange of a certain university, calls come in at a rate of 5 every 2 minutes. Assuming a Poisson distribution, the average number of calls per second is: a) 1/8 b) 1/12 c) 1/10 d) 2/5 e) 1/24
I. Order to add 40.25+1.31+.45 what is the first action to do ?
1. A jeweler has two gold bars, with 80% purity and the other with 95% purity. How much of each must be melted to obtain a 5 kilo ingot with 86% purity?
To find the increased amount on a standard term deposit with the following conditions: starting amount: BGN 13000, type of deposit: annual, annual compound interest rate: 1.4%, after 4 years;
the length of the fenced in area is to be 5 ft greater than the width and the total amount of fencing to be used is 89 ft find the width and length