As a young graduate, you have plans on buying your dream car in three years. You believe the car will cost P50,000. You have two sources of money to reach your goal of P50,000. First, you will save money for the next three years in a money market fund that will return 8% annually. You plan on making P5,000 annual payments to this fund. You will make yearly investments at the BEGINNING of the year. The second source of money will be a car loan that you will take out on the day you buy the car. You anticipate the car dealer to offer you a 6% APR loan with monthly compounding for a term of 60 months. To buy your dream car, what monthly car payment will you anticipate? a. P483.99 b.
As a young graduate, you have plans on buying your dream car in three years. You believe the car will cost P50,000. You have two sources of money to reach your goal of P50,000. First, you will save money for the next three years in a
a.
P483.99
b.
P540.15
c.
P627.73
d.
P652.83
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