Math Problem Statement
You just bought a new car for $X. To pay for it, you took out a loan that requires regular monthly payments of $1,150 for 32 months and a special payment of $39,900 in 8 months. The interest rate on the loan is 1.20 percent per month and the first regular payment will be made in 1 month. What is X? Round your answer to the nearest dollar.
Solution
Ask a new question for Free
By Image
Drop file here or Click Here to upload
Math Problem Analysis
Mathematical Concepts
Present Value
Annuities
Loan Amortization
Compound Interest
Formulas
PV_annuity = P * [(1 - (1 + r)^-n) / r]
PV_lump_sum = F * (1 + r)^-t
Theorems
Time Value of Money
Suitable Grade Level
College Level - Finance or Advanced High School Math
Related Recommendation
Calculate the Present Value of a Car Loan with Monthly Payments and Special Payment
Present Value of a Loan with Monthly Payments and Special Lump Sum
Calculate Present Value of a Loan with Monthly Payments and a Special Payment
Car Loan Present Value Calculation: $1,850 Monthly Payment and $13,000 Special Payment
Calculate the Price of a Car Using Present Value of Annuity and Lump Sum Payment