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

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)

What is the period of the trigonometric function f(x) = cos(3x) - sin(4x)?

Question: What is the median of the set {3, 5, 7, 12, 15, 20, 23, 25, 32}?

Question: If vector A has a magnitude of 10 units pointing east, vector B has a magnitude of 5 units pointing north, and vector C has a magnitude of 7 units pointing south, what is the resultant vector's magnitude and direction?

New questions in Mathematics

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

-442/c+5=26 what is c?

The patient is prescribed a course of 30 tablets. The tablets are prescribed “1 tablet twice a day”. How many days does a course of medication last?

A circular park has a diameter of 150ft. A circular fence is to be placed on the edge of this park. Calculate the cost of fencing this park if the rate charged is $7 per foot. Use π = 3.14.

Given the vectors: a = (2m – 3n, 4n – m) and b = (2, -3), find the values of m and n that make: a = 5 b.

How many different ways can a psychology student select 5 subjects from a pool of 20 subjects and assign each one to a different experiment?

By direct proof, how can you prove that “The sum of any three consecutive even integers is always a multiple of 6”.

What is 28 marks out of 56 as a percentage

2x+4x=

20% of 3500

Task 1 angel has 3 quarters 3/8 of a tank of gasoline and Miguel 7/8, who has more gasoline? number line on number line

A storage maker price is $2.50 per square feet. Find the price of a custom shed 4 yards long, and 5yards wide and 8 feet tall

How to convert 45 kg into grams

What is the value of f(-3) for the function X squared+5x-8=

Write an expression using compatible numbers that can be used to estimate the quotient 629\86

question 1 Consider a sample space S, and two events A and B such that P(A ∩ B) = 0.2, P(A ∪ B) = 0.6, P(B ∪ ̄A) = 0.8 (a) [0.5 points] Calculate P (A). (b) [0.5 points] Calculate P (B)

64-6x^2>0

f(r) = 1/r+9 find f(x^2) + 1

Paul invites 12 friends to his birthday. He wants to give 15 candies to everyone two. The candies are sold in packs of 25. How many should he buy? packages?

An invoice for €2,880 plus default interest of €48.40 was paid on October 28th. Interest rate 5.5%. When was the bill due?

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?

You might be interested in