Question: Please, help me show step by step. Thank you The salesperson offers, Buy this new car for $25,000 cash or, with appropriate down payment, pay

Please, help me show step by step. Thank you

The salesperson offers, "Buy this new car for $25,000 cash or, with appropriate

down payment, pay $500 per month for 48 months at 8% interest." Assuming

that the salesperson does not offer a free lunch, calculate the "appropriate" down

payment.

Your car loan requires payments of $200 per month for the first year and

payments of $400 per month during the second year. The annual interest rate is

12% and payments begin in one month. What is the present value of this two-

year loan?

What is the present value of a five period annuity of $3,000 if the interest rate is

12% and the first payment is made today?

What is the present value of a four-period annuity of $100 per year that begins

two years from today if the discount rate is 9%?

How much can you spend that will still allow real retirement spending to remain

approximately equal, assuming savings of $1,000,000 invested at 8%, a 25-year

horizon, and 4% expected inflation?

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