A person bought a car for $1,500,000 and agreed to pay for it in 36 equal...

 

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A person bought a car for $1,500,000 and agreed to pay for it in 36 equal installments, beginning one month after purchase. The contract also stipulates that the buyer must pay annuities equivalent to three monthly payments in December of each year. If the car was purchased on January 1st of year 1, in December of years 1, 2 and 3, you will have to pay four monthly payments in each period (one normal plus the annuity). If the interest charged is 1% per month, how many will the monthly payments be? A person bought a car for $1,500,000 and agreed to pay for it in 36 equal installments, beginning one month after purchase. The contract also stipulates that the buyer must pay annuities equivalent to three monthly payments in December of each year. If the car was purchased on January 1st of year 1, in December of years 1, 2 and 3, you will have to pay four monthly payments in each period (one normal plus the annuity). If the interest charged is 1% per month, how many will the monthly payments be?

Answer rating: 100% (QA)

To calculate the monthly payments we can use the formula for calculating the present value of a... View the full answer