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  • Ans A

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    Rashed Malik
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    finance

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    finance

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    4 views1 page

    Ans A

    Uploaded by

    Rashed Malik
    finance

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    Ans A) we know that

    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)

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