Valerie is planning to buy a car. She is working on her budget before she starts...

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Valerie is planning to buy a car. She is working on her budget before she starts her search to ensure that she will be able to afford the car she chooses. She can afford to make a payment of $650 per month for the next four years. The interest rate on the car loan will be 9.5% compounded monthly. When Valerie starts looking for her car, what should she use as her price range? Artur wants to buy a new stereo system that is on sale for $2500. He decides to pay for it using a two-year instalment plan with an interest rate of 8% compounded quarterly. How much will each of his quarterly payments be? How much interest is Artur paying? Valerie is planning to buy a car. She is working on her budget before she starts her search to ensure that she will be able to afford the car she chooses. She can afford to make a payment of $650 per month for the next four years. The interest rate on the car loan will be 9.5% compounded monthly. When Valerie starts looking for her car, what should she use as her price range? Artur wants to buy a new stereo system that is on sale for $2500. He decides to pay for it using a two-year instalment plan with an interest rate of 8% compounded quarterly. How much will each of his quarterly payments be? How much interest is Artur paying?

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1 Use PV function in EXCEL to find the price of the car tha... View the full answer