You purchase a new car after graduating college. The Purchase Price of the car was $27,...

 

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You purchase a new car after graduating college. The Purchase Price of the car was $27, 284.58. The interest rate is 7.81%. As a graduation gift your parents agreed to give you 12 % of the purchase price as a down payment toward the purchase price of the car. You contribute another 3,720 dollars on that down payment and plan to pay the balance off in three years with the interest compounded monthly. ) WHAT TYPE OF COMPOUNDING IS THIS? WHAT IS THE PRINCIPLE?. WHAT IS THE INTEREST RATE ON THE LOAN? HOW OFTEN IN A YEAR IS THE INTEREST RATE APPLIED? WHAT IS THE PERIODIC INTEREST RATE? WHAT FORMULA SHOULD YOU USE FOR FUTURE VALUE? ANSW: WRITE THE FORMULA THAT YOU WOULD USE IN THE SPACE BELOW: You purchase a new car after graduating college. The Purchase Price of the car was $27, 284.58. The interest rate is 7.81%. As a graduation gift your parents agreed to give you 12 % of the purchase price as a down payment toward the purchase price of the car. You contribute another 3,720 dollars on that down payment and plan to pay the balance off in three years with the interest compounded monthly. ) WHAT TYPE OF COMPOUNDING IS THIS? WHAT IS THE PRINCIPLE?. WHAT IS THE INTEREST RATE ON THE LOAN? HOW OFTEN IN A YEAR IS THE INTEREST RATE APPLIED? WHAT IS THE PERIODIC INTEREST RATE? WHAT FORMULA SHOULD YOU USE FOR FUTURE VALUE? ANSW: WRITE THE FORMULA THAT YOU WOULD USE IN THE SPACE BELOW: