Dave Krug finances a new automobile by paying $6,700 cash and agreeing to make 20 monthly...

Transcribed Image Text:

Dave Krug finances a new automobile by paying $6,700 cash and agreeing to make 20 monthly payments of $430 each, the first payment to be made one month after the purchase. The loan bears interest at an annual rate of 12%. What is the cost of the automobile? (PV of $1. EV of $1. PVA of $1, and EVA of $1) Note: Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places. Monthly Payment Present Value of Loan Table Factor $ 430 Table Values are Based on: n = 1 20% Cash Down Present Value of Loan Payment Cost of the Automobile $ 6,700 Dave Krug finances a new automobile by paying $6,700 cash and agreeing to make 20 monthly payments of $430 each, the first payment to be made one month after the purchase. The loan bears interest at an annual rate of 12%. What is the cost of the automobile? (PV of $1. EV of $1. PVA of $1, and EVA of $1) Note: Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places. Monthly Payment Present Value of Loan Table Factor $ 430 Table Values are Based on: n = 1 20% Cash Down Present Value of Loan Payment Cost of the Automobile $ 6,700