$MathMaster logo$

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

106 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)

Find the sum and product of two numbers if their sum is 10 and their product is 16.

+

Math question: What is the smallest positive integer solution to the equation x^n + y^n = z^n, where n > 2 in Fermat’s theorem?

+

What is the square root of x-1, where x is a positive number?

+

New questions in Mathematics

5 squirrels were found to have an average weight of 9.3 ounces with a sample standard deviation is 1.1. Find the 95% confidence interval of the true mean weight

Since one of the three integers whose product is (-60) is (+4), write the values that two integers can take.

(x^2+3x)/(x^2-9)=

Jose bought 3/4 of oil and his sister bought 6/8, which of the two bought more oil?

What payment 7 months from now would be equivalent in value to a $3,300 payment due 23 months from now? The value of money is 2.7% simple interest. Round your answer to 2 decimal places. Show all work and how you arrive at the answer..

A bird randomly chooses to land on 1 of 12 perches available in its aviary. Determine the Probability of it landing on a perch numbered 8 and then on a perch marked with a prime number; take into account that he never lands on the same perch in the sequence.

2x-4y=-6; -4y+4y=-8

Sean must chose a 6- digit PIN number for his online banking account.Each digit can be chosen from 0 to 9. How many different possible PIN numbers can sean chose.

is the x element (180,270), if tanx-3cotx=2, sinx ?

Substitute a=2 and b=-3 and c=-4 to evaluate 2ac/(-2b^2-a)

. What will be the osmotic pressure of a solution that was prepared at 91°F by dissolving 534 grams of aluminum hydroxide in enough water to generate 2.784 ml of solution.

How to do 15 x 3304

Three machines called A, B and C, produce 43%, 26% and 31% of the total production of a company, respectively. Furthermore, it has been detected that 8%, 2% and 1.6% of the product manufactured by these machines is defective. a) What is the probability that a product is not defective? b) A product is selected at random and found to be defective, what is the probability that it was manufactured on machine B?

nI Exercises 65-68, the latitudes of a pair of cities are given. Assume that one city si directly south of the other and that the earth is a perfect sphere of radius 4000 miles. Use the arc length formula in terms of degrees to find the distance between the two cities. 65. The North Pole: latitude 90° north Springfield, Illinois: latitude 40° north

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;

Read the “Local Communities as Stakeholders: Does Amazon Really Need Tax Breaks?” example on p. 83 in Ch. 3 of Management: A Practical Introduction. In your response, discuss whether you feel that tax breaks for big companies benefit local communities. Describe ways to attract business to a region without having a negative impact on the larger community.

Define excel and why we use it?

Solve the system of equations by the addition method. 0.01x-0.08y=-0.1 0.2x+0.6y=0.2

The car with an irresponsible driver starts to brake when it goes through a red light. When passing the traffic light, he does so at a speed of 115 kph in the right lane. Further ahead, 70 meters from the traffic light, a child is crossing the street and falls. If the effect of the car's brakes is equivalent to a deceleration of magnitude 5.7m/s². Is the child hit by the car or not? How far from the traffic light does the car stop?