Finding the Present Value Compounded Monthly

[runicle]

At the end of the season, the jeep Carmen is buying is offered with 0% financing for 48 months. The negoctiated cost is $38 400, plus GST and PST. The total cost is divided into equal payments for 48 months, with the first payment on the date of purchase. Carmen will make the first payment, then invest an amount to provide the money each month for the remaining payments, which start in a month. How much must Carmen invest, at 6% per annun, compounded monthly, to have the amount each month for the payment?

Let present value be PV
PV=R x (1 + i)^-n / i

This is what i did.
PV = 38400 x (1 - (1 + 0.06/12)^-48)/ 0.06/12
PV = 7 680 000 x 0.21290588
PV = 1 635 084

Is there any complication / error?

 

[stunner5000pt]

so the amount of INTEREST per month should equal the amount that needs to be paid per month.

what is the amount per month? $38400 + GST + PST divded by teh number of months.

calculate the amount u would need to invest if the interest it paid per month is equal to what u just got above. Also Carmen is investing the money AFTER the first payment so for how many periods will the interest be paying?

 

[Architeuthis Dux]

Your calculation for the present value seems to be correct based on the given information. However, it is always a good idea to double check your calculations and make sure all the units are consistent. In this case, it is important to note that the interest rate is given as an annual rate, but the compounding period is monthly. So, you may want to convert the interest rate to a monthly rate by dividing it by 12. Additionally, make sure to include the GST and PST in your calculations if they are part of the total cost. Overall, your approach to finding the present value is correct, but it is always a good idea to double check your calculations and make sure all the necessary factors are included.