Check my work Dave Krug finances each, the first payment to be made one month af

Question

Check my work Dave Krug finances each, the first payment to be made one month after the purchase. The loan beers interest at an annual rate a new automobile by paying $6,500 cash and agreeing to make 40 monthly payments of $500 What is the cost of the automobile? (PV of $1. EV of S1. PVA of $1, and FVA of $) (Use appropriote factorífs) from the tables provided. Round "Table Factor" to 4 decimal ploces.) oints Payment Table FactorPresent V Loan ellook Table values are based on n. Hint Pa Print References

Explanation / Answer

Monthly Payment Table Factor Present Value of Loan $500 x 32.83469 = $16,417.35 Table values are based on: n = 40 i = 1% Present value of loan + Cash Down Payment = Cost of the Automobile $16,417.35 + $6,500 = $22,917.35 n = number of monthly payments = 40 monthly payment I = rate per period = 12%/12 months = 1% per month

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