| Chapter 4 - 50 | ||||
| Calculating Annuities Dues | ||||
| You want to buy a new sports car from Muscle Motors for 83000. | ||||
| The contract is in the form of a 60 month annuity due at an APR of 4.89%. | ||||
| Compounded Monthly. | ||||
| What will your monthly payment be? | ||||
| PVAdue=(1+r)PVA | ||||
| PV | 83000 | |||
| n | 60 | |||
| i | 0.0489 | |||
| PVA due | -$1,555.79 | =PMT(D14/12,D13,D12,,1) | ||
| Note as this is an annuity due, use 1 for type | ||||
| as the payment is at the beginning. | ||||
Wednesday, January 16, 2019
Finance Chapter 4 - 50 - Calculating Annuities Dues
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