Contemporary Engineering Economics 6th Edition by Chan Park

تمرين 30

Smith wants to buy a new car that will cost $18,000. He will make a down payment in the amount of $8,000. He would like to borrow the remainder from a bank at an interest rate of 9% compounded monthly. He agrees to pay off the loan monthly for a period of two years. Select the correct answer for the following questions:
(a) What is the amount of the monthly payment A
i. A = $10,000( A / P , 0.75%, 24)
ii. A = $10,000( A / P ,9%, 2)/12
iii. A = $10,000( A / F ,0.75%,24)
iv. A = $12,500( A / F ,9%,2)/12
(b) Mr. Smith has made 12 payments and wants to figure out the balance remaining immediately after 12th payment. What is that balance
i. B 12 =12 A
ii. B 12 = A ( P/A ,9%, 1)/12
iii. B 1 2 = A ( P/A ,0.75%, 12)
iv. B 12 = 10,000 12 A