ul BookmarksPeople Window Help T2 Do Homework - Jinchun Shi 87%-)- Tue Sep 18 11

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ul BookmarksPeople Window Help T2 Do Homework - Jinchun Shi 87%-)- Tue Sep 18 11:28 AM Shi rehun Secure https://www.mathxl.com/Student/PlayerHomework aspx?homeworkid-492754014&questionld-18flushed-faise&cld-5109832 a E Fall 2018 Section 001 MW jinchun Shi 9/18/18 11:28AM Homework: WS4 Score: 0 of 1 pt P4-10 (similar to) Save 80f 8 (1 complete) HW Score: 12.5%, 1 of 8 pts Question Help Present value. A smooth-talking used-car salesman who smiles considerably is offering you a great deal on a "pre-ownedt car. He says, 'For only 8 annual payments of S2 600, this beautiful 1998 Honda Civic can be yours if you can borrow money at 8%, what is the pnce of this car? Assure the payment s made at the end of each year If you can borrow money at 8%, what is the price of this car? s(Round to the nearest cent.) Enter your answer in the answer box and then click Check Answer Check Answer Clear All All parts showing 2nd TUTORS CHAT view

Explanation / Answer

Answer:

Please find the answer as follows:

You need to calculate the present value of the annual payments to get the price

Price = 2600*PVIFA(8%, 8 years)

Price = 2600*5.7466 = $ 14941.16

Answer is $ 14941.

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