Please show the formula being use 6.) Liza is planning to buy a Mazda 3 which has a price of 2.4million in cash.However, she wants to buy it installment for 5 years with 40 equal payments.If the interest rate is 8%, how much will she need to pay every payment?ANSWER: A = 201,264.38767.) John borrowed P4500 cash from his friend. His friend's condition is that hemust pay his debt in 2 years with an interest of 3% one time payment only.However, john plans to set aside an amount of money in his piggy bank every3months with an interest of 4% compounded quarterly until he canaccumulate the total debt and pay it one time to his friend. How much moneymust John set aside every 3months? ANSWER: A = 559.3995

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years with 40 equal payme every payment? how much will she need to pay

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Please show the formula being use

6.) Liza is planning to buy a Mazda 3 which has a price of 2.4million in cash.
However, she wants to buy it installment for 5 years with 40 equal payments.
If the interest rate is 8%, how much will she need to pay every payment?
ANSWER: A = 201,264.3876
7.) John borrowed P4500 cash from his friend. His friend's condition is that he
must pay his debt in 2 years with an interest of 3% one time payment only.
However, john plans to set aside an amount of money in his piggy bank every
3months with an interest of 4% compounded quarterly until he can
accumulate the total debt and pay it one time to his friend. How much money
must John set aside every 3months? ANSWER: A = 559.3995

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