Question: Assume the same information as in BE3.24, except that you can afford to make annual payments of only $6,000. If you decide to trade in

Assume the same information as in BE3.24, except that you can afford to make annual payments of only $6,000. If you decide to trade in your current car to help reduce the amount of financing required, what trade-in value would you need to negotiate to ensure your annual payment is $6,000? Show
calculations using

(a) Factor Table PV.2,

(b) A financial calculator,

Data from BE3.24 You would like to purchase a car with a negotiated price of $30,000, and the dealer offers financing over a five-year period at 8%. If repayments are to be made annually, what would be your annual payments?

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