A person has a $500 monthly car payment, which is based on 12% annual interest, compounded monthly. Determine the amount of car bought if it was financed for 24 months and no down payment was paid.

The present value of the car whe it was purchase will be of $ 10,621.69

Explanation:

We need to sovle for the present value of an annuity given the PTM of $500 the interst rate off 12% compounded monthly and that time of the lona is 24 months:

C$500.00

time24

rate0.01 (12% = 0.12 er year / 12 months )

PV$10,621.6936

answer; closing the loop;