A car may be purchased with a 3500 down payment now and 72, Business Economics

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A car may be purchased with a 3500 down payment now and 72

1) a car may be purchased with a $3500 down payment now and 72 monthly payments of $480. If the interest rate is 12% compounded monthly, what is the price of the car?

2) using linear interpolation, determine the value of (P/A, 6 1/4%,10) from the compound interest tables. Compute the same value using the equation or a 5-button solution. Why do the values differ?

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Business Economics: A car may be purchased with a 3500 down payment now and 72

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