Denzel needs a new car. At the dealership, he finds the car that he likes. The d
ID: 2504976 • Letter: D
Question
Denzel needs a new car. At the dealership, he finds the car that he likes. The dealership gives him two payment options
2. Pay $3,000 at the end of each quarter for three years.
Assuming Denzel uses a discount rate of 12% (or 3% quarterly), Calculate the present value? Use Table 4. (Do not round PV factors. Round your answers to 2 decimal places. Omit the "$" sign in your response.)
Which payment option has to be chosen?
Denzel needs a new car. At the dealership, he finds the car that he likes. The dealership gives him two payment options
Explanation / Answer
option 2 :3000* annuity factor(3%, 12 periods)
=3000*9.9540=29862
choose option 2
Present Value Option 1 $ 30000 Option 2 $ 29862Related Questions
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