$MathMaster logo$

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

95 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 are the equations for the medians, altitudes, and angle bisectors in a triangle?

+

Find the measure of an angle,

+

Find the integral of ∫(3x^2 - 5)dx

+

New questions in Mathematics

Pedro bought 9 kg of sugar at the price of R$1.80 per kilogram, six packets of coffee at the price of R$3.90 per packet and 8 kg of rice at the price of R$2.70 per kilogram. Knowing that he paid for the purchases with a R$100.00 bill, how much change did he receive?

431414-1*(11111-1)-4*(5*3)

I need .23 turned into a fraction

The graph of the equation x²= 4py is a parabola with focus F(_,_) and directrix y=_____ Therefore, the graph of x²=12y is a parabola with focus F(_,_) and a directrix y=_____

The sum of two numbers is 6, and the sum of their squares is 28. Find these numbers exactly

what is the annual rate on $525 at 0.046% per day for 3 months?

A company that manufactures personal hygiene items purchases machinery for $220,000 that is considered to last 7 years; it is estimated that at the end of the period it will have a salvage value of $1000. Find: to. The depreciation rate. b. The book value at the end of the sixth year.

Find 2 numbers whose sum is 47 and whose subtraction is 13

The price per night of a suite at the Baglioni Hotel in Venice is 1896 euros, VAT included. The VAT in Italy is 25%. The hotel gets a return of 10% out of the price VAT included. a) What is the amount of VAT paid by the hotel for one

Estimate the quotient for 3.24 ÷ 82

Convert 9/13 to a percent

John he’s going to the carnival with his friends. He spends $25 on an admission ticket. He buys 10 games at X dollars each and two boxes of popcorn at Y dollars each. Write an expression to show the total cost of admission game, tickets and popcorn.

9.25=2pi r solve for r

Find the vertex F(x)=x^2-10x

Perform operations with the polynomials P(x) = x3 and Q(x) = 2x2 + x – 3x3 : a) P(x) - Q(x)