While buying a new car. Thomas made a down payment of $1,000 and agreed to make...

 

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While buying a new car. Thomas made a down payment of $1,000 and agreed to make month-end payments of $280 for the next 3 years and 8 months. He was charged an interest rate of 4% compounded semi-annually for the entire term. a. What was the purchase price of the car? $0.00 Round to the nearest cent b. What was the total amount of interest paid over the term? $0.00 Round to the nearest cent While buying a new car. Thomas made a down payment of $1,000 and agreed to make month-end payments of $280 for the next 3 years and 8 months. He was charged an interest rate of 4% compounded semi-annually for the entire term. a. What was the purchase price of the car? $0.00 Round to the nearest cent b. What was the total amount of interest paid over the term? $0.00 Round to the nearest cent

Answer rating: 100% (QA)

To solve this problem well use the formula for the present value of an ordinary annuity PV ... View the full answer