Toyota is offering 36-month $0 down, 2.45% APR (Annual Percentage Rate) financing on a car you...
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Toyota is offering "36-month $0 down, 2.45% APR (Annual Percentage Rate)" financing on a car you have decided to buy. That stated price for the car is $35,000. What are the monthly payments required for Toyota's special-financing deal? You are to receive $80 payment indefinitely. The market rate of interest for these types of payments is 8%. What should be the price you would pay for this stream of cash flows? Toyota is offering "36-month $0 down, 2.45% APR (Annual Percentage Rate)" financing on a car you have decided to buy. That stated price for the car is $35,000. What are the monthly payments required for Toyota's special-financing deal? You are to receive $80 payment indefinitely. The market rate of interest for these types of payments is 8%. What should be the price you would pay for this stream of cash flows?
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1 2 Present value of cash flowsAnnual paymentsmarket rate of interest 80008 which is equal ... View the full answer
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