Note :

In a General Annuity the interest period does not match the payment period.

That means that each question requires a two-step solution

Step 1 - find the equivalent interest rate to match the payment period. Do not round this interest rate

Step 2 - use the appropriate formula, Sn or An.

If you do not recognize the general annuity and skip Step 1, you will score 0% on Test 4.

A property was purchased for $5043.00 down and payments of $861.00

at the end of every month for 6 years. Interest is 4% per annum compounded annually.

What was the purchase price of the property? How much is the cost of financing?

Question content area bottom

Part 1

The purchase price of the property was

$enter your response here.

(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Part 2

The cost of financing is

$enter your response here.

(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)