Solutions to Chapter 1 - San Francisco State University

25. a. Your monthly payments of $400 can support a loan of: $15,189.58. This is computed as follows: PV= Using a financial calculator, enter: n = 48, i = 12%/12 = 1%, FV = 0, PMT = 400 and compute PV = $15,189.58. With a down payment of $2,000, you can pay at most $17,189.58 for the car. b. In this case, n increases from 48 to 60. ................
................

In order to avoid copyright disputes, this page is only a partial summary.