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Homework answers / question archive / You want to buy a new laptop and you are given the payment scheme: 4,317 cash down payment and 4,754
You want to buy a new laptop and you are given the payment scheme: 4,317 cash down payment and 4,754.5 at every end of the month for the next 1 years. If money is worth 4.66 % compounded monthly, how much is the laptop worth today? Round off to 2 decimal places.
Cash value of laptop will be present value of cash payment of$4754.5 paid end of every month and payment of $4317 as on Today
Interest rate will be 4.66%/12 i.e.0.388 since its compounded monthly.
Further this interest shall be compounded 12 times.
PVF for 0.388 for12 months =11.703
Note :-This can be calculated on normal calculator like this
1/1.00388 do this then press equal to 12 times (12 months) then do grand total
Or if you have chart then it can be taken from chart also
Back to the main solution
$4754.5 x 11.703 +$4317 =$59958. 91 or if $60000(aprrox)
Note:- since we've taken 3 decimals if we take full decimal oj calculator then we will get $60000.