Question: 2 - 1 4 Money is worth 0 . 7 5 % per month to you. You're offered the following deals to buy your new
Money is worth per month to you. You're offered the following deals to buy your new BMW Li with twinturbocharged and intercooled DOHC valve V
Deal A:
Pay no money down
Pay $ per month for months Pay $ per month for the second year months
Pay $ per month for years and months
You own the car!
Deal B:
Pay X amount down today
Pay $ per month for months You own the car!
What is the amount X that you must pay down to make Deal A and Deal B equivalent? Compound monthly.
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