Question

Jane agrees to buy a car for a down payment of $4000 and payments of $260 per month for 9 years. If the interest rate is 9% per year, compounded monthly, what is the actual purchase price of her car? (Round your answer to the nearest cent.)

Answer 1

i = .09/12 = .0075
n =9(12) = 108

cash value of car
= 4000 + 260(1 - 1.0075^-108)/.0075
= ...