Present value of an ordinary annuity PDF

Preview

Summary

quiz answers...

Description

Financial mathematics Edition 2 Perdisco Finish

Bookmark

Present value of an ordinary annuity [feedback page] This is a feedback page. You can print this page or bookmark it to return later. When you are ready, c clicking finish. You will then see your final score and a summary of the learnin you have clicked finish you will not be able to return to this feedback page, so save it to your computer if you want to refer to it later.

- 1 of 3 ID: FMTH.A.OA.PV.02.L Hadiputra buys a car by paying $5,500 plus payments of $486.15 at the end of each quarter for the loan is 9.3% pa compounded quarterly. Give your answer in dollars and cents to the nearest P=$ 3

-

Feedback

[0 out of 1]

This is not correct. P = $11,933.99

Calculation The price can be calculated using the following formula: hide variables

D = deposit = $5,500 R = regular payment = $486.15 n = time periods (years × quarters per annum) = 4 × 4 = 16 j4 = nominal rate per annum compounded quarterly = 9.3% j 9.3% = 0.02325 i = effective rate per quarter (decimal) = 4 = 4 4 P = price (present value) = unknown

1 - (1 + i)-n...