Your car loan requires payments of $200 per month for the first year and payments of $400 per month during the second year.The APR is 12% and payments begin in one month.What is the present value of this 2-year loan?

Question

Quizplus · Accepted Answer

PV = {$200 {(1 / 0.01) − [1 / 0.01(1.01)¹²]}} + ({$400 {(1 / 0.01) − [1 / 0.01(1.01)¹²]} / 1.01¹²)}PV = $6,246.34

Your Car Loan Requires Payments of $200 Per Month for the First