Nesrin purchased a new car for $9420 paying $3000 down paying and agreeing to 12 monthly payment (by notes) of a face value of $600 each begining a month after the purchase. Calculate the credit rate.
Nesrin purchased a new car for $9420 paying $3000 down paying and agreeing to 12 monthly payment (by notes) of a face value of $600 each begining a month after the purchase. Calculate the credit rate.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Nesrin purchased a new car for $9420 paying $3000 down paying and agreeing to 12 monthly payment (by notes) of a face value of $600 each begining a month after the purchase.
Calculate the credit rate.
Nesrin suggested to pay $3000 the day of purchase and substituting the 12 notes with a unique note of $7200.Determine the due date of that note with the samr conditions of above.
At last,she decided to payb$4680 down payment and agreeing to pay the remaining amount by 3 payments every 4 months.The payments would begin 4 months from the time of purchase.The payment amount will increase by a geometrical sequence of common ratio q=2.
If the credit discount rate is 12%, calculate the maturity value Vi of each payment.
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