Find solution using the mathematical equivalence formulae

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Reference no: EM13850499

NOTE: In problem below:

• Show your cash flow diagrams

• Find the solution using the mathematical equivalence formulae (such as F=P(1+i)n ), substitute and solve (with your calculator – not with the tables) for the final answer

• Solve by using the proper equivalence expressions (such as F = P(F/P, i, n)) and the tables of equivalence factors.

• Draw a box around your final answers.

• APR = Annual Percentage Rate

You want to by a boat and can afford payments of $350 per month for six years. The monthly interest rate is 0.5%. (a) What is the maximum you can spend on the boat if there is no down payment? (b) What is the maximum you can spend on the boat if you make a down payment of $6000 at the time of purchase?

Reference no: EM13850499

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