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Problem:

The car dealership offers you no money down on a new car. You may pay for the car in 6 equal annual end-of-the year payments of $7,648 each with the first payments to be made one year from today.

If the discount rate is 8.91 percent compounded annually what is the present value of the car payments? Round to 2 decimals

Please provide all calculation and formulas.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91146422

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