$MathMaster logo$

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)

What is the limit of (sin x / x) as x approaches 0?

+

What is the value of f(1) for the logarithmic function f(x) = log x, where log denotes the base 10 logarithm?

+

Question: What is the value of arctan(1) + arcsin(0.5) - arccsc(2) - arccos(0.8)? (

+

New questions in Mathematics

The gross domestic product the gdp for the United States in 2017 was approximately $2.05x10^3. If you wrote this number in standard notation , it would be 205 followed by how many zeros

the value of sin 178°58'

(5-(4-3)*3)-(8+5))

To celebrate the five-year anniversary of a consultancy specializing in information technology, the administrator decided to draw 3 different qualification courses among its 10 employees. Considering that the same employee cannot be drawn more than once, the total number of different ways of drawing among employees is:

Find the derivatives for y=X+1/X-1

4x/2+5x-3/6=7/8-1/4-x

What is the total tolerance for a dimension from 1.996" to 2.026*?

Determine the general equation of the straight line that passes through the point P (2;-3) and is parallel to the straight line with the equation 5x – 2y 1 = 0:

The average number of babies born at a hospital is 6 per hour. What is the probability that three babies are born during a particular 1 hour period?

Next%C3%B3n%2C+we+are+given+a+series+of+Tri%C3%A1angles+Right%C3%A1angles+%3Cbr%2F%3Ey+in+each+one+of+them+ are+known+2%28two%29+measurements+of+sides.+%3Cbr%2F%3Elet's+determine+all+trigonom%C3%A9tric+ratios.

We have two distributions: A (M = 66.7, 95% CI = [60.3, 67.1]) / B (M = 71.3 95% CI = [67.7, 74.9]). Erin maintains that B is significantly larger than A. Provide your opinion on Erin’s argument and justify your opinion.

We plan to test whether the mean mRNA expression level differs between two strains of yeast, for each of 8,000 genes. We will measure the expression levels of each gene, in n samples of strain 1 and m samples of strain 2. We plan to compute a P-value for each gene, using an unpaired two-sample t-test for each gene (the particular type of test does not matter). a) What are the null hypotheses in these tests (in words)? [2] b) If, in fact, the two strains are identical, how many of these tests do we expect to produce a P-value exceeding 1/4? [2]

A given initial capital in simple interest at the annual rate and for 27 months produced the accumulated capital of 6600 um if the same capital had been invested at the same rate but during 28 months the said accumulated capital would be increased in an amount corresponding to 0.75% of the initial capital Calculate the initial capital and the annual rate at which it was invested

Write the inequality in the form of a<x<b. |x| < c^2

Solve the following system of equations using substitution. y=-4x- 11. 3x+7y=-2

The perimeter of a rectangular rug is 42 feet. The width is 9 feet. What is the length?