Question

When purchasing a car and 3 documents worth $15,000 will be paid each to be paid in months 2, 4 and 6. If you wish to pay in 2 installments equal, in months 4 and 8. What should be the amount of these payments? Consider that money changes at a rate of 35% compounded semiannually monthly.

283

likes
1413 views

Answer to a math question When purchasing a car and 3 documents worth $15,000 will be paid each to be paid in months 2, 4 and 6. If you wish to pay in 2 installments equal, in months 4 and 8. What should be the amount of these payments? Consider that money changes at a rate of 35% compounded semiannually monthly.

Expert avatar
Brice
4.8
113 Answers
To solve this problem, we need to find the equivalent value of three payments of $15,000 each, due in months 2, 4, and 6, and then determine the size of two equal payments in months 4 and 8.

### Step 1: Calculate the monthly interest rate
Given a 35% annual interest rate compounded semiannually:
- Semiannual rate = 35% / 2 = 17.5% per half year.

To convert a semiannual rate to a monthly rate when compounded semiannually:
\left(1 + \text{Semiannual rate}\right)^{\left(\frac{1}{6}\right)} - 1

Calculating it:
\left(1 + 0.175\right)^{\left(\frac{1}{6}\right)} - 1 = \left(1.175\right)^{\left(\frac{1}{6}\right)} - 1 \approx 0.0273 \text{ or } 2.73\% \text{ per month}

### Step 2: Calculate the present value of payments at month 4
- **Month 2**: $15,000 due in 2 months discounted to month 4:
PV_{\text{month 2 to 4}} = \frac{15000}{(1.0273^2)} = \frac{15000}{1.0559} \approx 14212.48
- **Month 4**: $15,000 due in 0 months
PV_{\text{month 4}} = 15000
- **Month 6**: $15,000 due in 2 months forward from month 4:
PV_{\text{month 6 to 4}} = \frac{15000}{(1.0273^2)} = \frac{15000}{1.0559} \approx 14212.48

Total present value at month 4:
PV_{\text{total}} = 14212.48 + 15000 + 14212.48 \approx 43424.96

### Step 3: Calculate the amount of each of the two equal payments in months 4 and 8
Let x be the payment amount in months 4 and 8.

x + \frac{x}{(1.0273^4)} = 43424.96
x + \frac{x}{1.1145} = 43424.96
x (1 + \frac{1}{1.1145}) = 43424.96
x (1.7933) = 43424.96
x = \frac{43424.96}{1.7933} \approx 24223.72

### Answer:
Each of the two equal payments to be made in months 4 and 8 should be approximately $24,223.72 to cover the equivalent value of the three payments worth $15,000 each due in months 2, 4, and 6, considering the given interest rate.

Frequently asked questions (FAQs)
What is the resultant displacement when a vector A of magnitude 45 units is added to a vector B of magnitude 65 units at an angle of 30 degrees between them?
+
Question: Find the value of arccos(sin(Ο€/4)) + arcsin(cos(3Ο€/4)).
+
What is the value of the square root of 16 multiplied by the square root of 25 plus the square root of 36, minus the square root of 49 multiplied by 2?
+
New questions in Mathematics
A particular employee arrives at work sometime between 8:00 a.m. and 8:50 a.m. Based on past experience the company has determined that the employee is equally likely to arrive at any time between 8:00 a.m. and 8:50 a.m. Find the probability that the employee will arrive between 8:05 a.m. and 8:40 a.m. Round your answer to four decimal places, if necessary.
Let f(x)=||x|βˆ’6|+|15βˆ’|x|| . Then f(6)+f(15) is equal to:
The strength of Kefexin oral suspension is 100 mg/ml. Nora has been prescribed cefalexin at a dose of 50 mg/kg/day divided in two single doses. Nora weighs 14 kg. How many milliliters of solution for Nora should be given as a single dose?
Imagine that you are in an electronics store and you want to calculate the final price of a product after applying a discount. The product you are interested in has an original price of $1000 MN, but, for today, the store offers a 25% discount on all its products. Develop an algorithm that allows you to calculate the final price you will pay, but first point out the elements.
For a temperature range between -3 degrees Celsius to 5 degrees Celsius, what is the temperature range in degrees Farenheight
Determine the equations of the recipes that pass through the following pairs of points P1 (2;-1) and p2 (4;-1)
B - (-4)=10
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.
7. Find the equation of the line passing through the points (βˆ’4,βˆ’2) π‘Žπ‘›π‘‘ (3,6), give the equation in the form π‘Žπ‘₯+𝑏𝑦+𝑐=0, where π‘Ž,𝑏,𝑐 are whole numbers and π‘Ž>0.
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
In a order to compare the means of two populations, independent random samples of 410 observations are selected from each population, with Sample 1 the results found in the table to the right. Complete parts a through e below. X1 = 5,319 S1= 143 a. Use a 95% confidence interval to estimate the difference between the population means (H - H2) Interpret the contidence interval. The contidence interval IS (Round to one decimal place as needed.) Sample 2 X2 = 5,285 S2 = 198 Aa. Use a 95% confidence interval to estimate the difference between the population means (A1 - M2) Interpret the contidence interval. The contidence interval Is (Round to one decimal place as needed.) b. Test the null hypothesis Ho versus alternative hypothesis Ha (H What is the test statistic? H2) + Give the significance level of the test, and interpret the result. Use a = 0.05. Z=
Your boss asks you to plan the sample size for a randomized, double-blind, controlled trial in the clinical development of a cure for irritable bowl disease. Current standard treatment shall be compared with a new treatment in this trial. The S3-guideline of AWM demonstrated a mean change of the summary score of the validated health related quality of life questionnaire at 8 weeks of 16 with standard deviation 23 under standard treatment. You quote the drop-out rate of 11% from literature (previous phase of clinical development). Your research yielded a clinically important effect of 4 that has been found to be the Minimal Clinically Important Difference (MCID). In order to demonstrate superiority of the new treatment over standard of care, you assume that the change in of the summary score of the validated health related quality of life questionnaire follows a normal distribution, and that the standard deviation is the same for both treatments. How many patientes would one need to recruit for the trial to demonstrate the clinically interesting difference between treatments at significance level 5% with 95% power?
Congratulations, you have saved well and are ready to begin your retirement. If you have $1,750,000.00 saved for your retirement and want it to last for 40 years, and will earn 10.8% compounded monthly: What is the amount of the monthly distribuion? 216.50 How much interest is earned in retirement?
Twenty‐five students in a class take a test for which the average grade is 75. Then a twenty‐sixth student enters the class, takes the same test, and scores 70. The test average grade calculated with 26 students will
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]
Kayla started a book club at her school. The number of girls in the book club was one more than twice the number of boys. If there are 15 girls in the book club, how many boys are in the club?
question 1 Consider a sample space S, and two events A and B such that P(A ∩ B) = 0.2, P(A βˆͺ B) = 0.6, P(B βˆͺ Μ„A) = 0.8 (a) [0.5 points] Calculate P (A). (b) [0.5 points] Calculate P (B)
Mark is gluing a ribbon around the sides of a picture frame. The frame is 11 inches long and 7 includes wide. How much ribbon does Mark need?
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?