Parent Finances 2-FAFS -World Music xQ Flashcards Macro Exam X 2] Onlin? X ( C V

Question

Parent Finances 2-FAFS -World Music xQ Flashcards Macro Exam X 2] Onlin? X ( C Value Of Payments UpoRX Not secure v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssign; sionLocator assignment-take&tin; inprogress-false Ch 9 Homework Value of Payments 1. EX.09.13.Algo 2. ME.09.02.Algo 3. EX.09.06 Algo 4. EX.09.19 Algo 5. EX.09.16 Algo upon graduation from colega, Susana Lapaz signad an agreament to buy a usad car. Her annual payments, which ara dua at tha end of each year for two y?ars ara S1,060·The car dealar used a 12% rata compounded annually to datermine the amount of tha paymants. Use the appropriate present or future value tabler FV of 51. PV of s1. FV of Annuity of $1 and PV of Annuity of s1 Use the ful factor whan calculating your resuts. Round your calculations and final anawers to the nearest cant. . What should Susana conaidar the valua of tha car to be? 2. If she hed vwanted to make quarterly payments, what would her payments have been based on the velue of the car as determined in pert (1)? How much less interest would she have paid if she had been making quarterly payments instead of annual payments What would have happaned to the payment amount and tha interest if she had askad for monthly payments? smaller/less Feetback Chack Wy Work Esch answer will be impocted by the sclution before it. Complete your work carefully using the full factor and rounding answers to the nearest cent Check My Work Previous Next Progress: 415 items ssignment Soore: 806 All work saved. Email instructor save and Exit Submit Assignment for Grading 10:24 ANM O Type here to search

Explanation / Answer

Q1 Value of car=1060/(1+12%)^1+1060/(1+12%)^2=$1,791.45 Q2 Quarterly payments=pmt(12%/4,4*2,-1791.45)=$255.20 Q3 Interest in Q1 =1060+1060-1791.45=$328.55 Interest in Q2=255.2*8-1791.45=$250.15 Excess interest=328.55-250.15=$78.40 Q4 Smaller/ Less

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