Answered

Westonci.ca is your trusted source for finding answers to all your questions. Ask, explore, and learn with our expert community. Discover in-depth answers to your questions from a wide network of experts on our user-friendly Q&A platform. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.

Someone offers to buy your old Ford F-150 truck for 4 equal annual payments, beginning 2 years from today. If you think that the present value of your Ford Truck is only $9,000 and you assume the interest rate is 10%, which one of the below would be the minimum annual payment that youâ d be willing to accept? $2,839.24 $3,435.48 $3,123.16 $2,250

Sagot :

Answer:

$3,123.16

Explanation:

The computation of the minimum annual payment is as follows:

Given that

RATE = 10%

NPER = 10%

PV = $9,000 × (1 + 0.1) = $9,900

FV = $0

The formula is shown below:

= PMT(RATE,NPER,-PV,FV,TYPE)

After applying the above formula, the monthly payment is $3,123.16

Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.