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Ans A) We Know That FV P (1+i) Given That! PV $98,000 I 4% Which Is Equal To 0.04 N 8 Years by The Formula We Get FV 98,000 (1+.04)
Ans A) We Know That FV P (1+i) Given That! PV $98,000 I 4% Which Is Equal To 0.04 N 8 Years by The Formula We Get FV 98,000 (1+.04)
FV = P0 (1+i)n
Given that!
Pv = $98,000
i = 4% which is equal to 0.04
n 8 years
By the formula we get
Fv = 98,000(1+.04)8
Fv =98,000(1.04)8
Fv = 134,119.77
So according to statement she decides 20% down payment so
(134,119.77)(20) = 26,823.95.
Down payment = 26,823.95.
Ans B) On the basis of answer No 1 which is (26,823.95)