MHB İnterest question for my exam toorrow

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To determine the cash price of a car purchased on an installment plan, the buyer pays 50,000 upfront and four equal installments of 20,000 each at an 8% effective interest rate. Using the present value of annuity formula, the present value of the four payments is calculated to be approximately 66,243. Adding the upfront payment, the total cash price of the car amounts to 116,243. Additionally, there is a query about the dollar value of the 20,000 installment. The discussion primarily focuses on calculating the total cost of the car based on the given payment structure and interest rate.
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Hi everyone. I have a one question about interest rates for my exam, if you help I'd be happy.

A man buys car on instalment basis such that he pays 50.000 on signing of the contract and remaining in 4 equal instalments of 20.000 the first is being paid at the end of first year and so on for each year if the rate of interest is %8 effective, find the cash price of the car?
 
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Mhmdozer said:
A man buys car on instalment basis such that he pays 50.000 on signing of the contract and remaining in 4 equal instalments of 20.000 the first is being paid at the end of first year and so on for each year if the rate of interest is %8 effective, find the cash price of the car?
Formula (present value of annuity):
p = a[1 - 1/(1+i)^n]/i

a = amount of payment (20.000)
i = interest rate (.08)
n = number of payments (4)
p = present value (?)

That will result in p = 66.243,
so price of car = 66.243 + 50.000 = 116.243

Curious: what is value in dollars of 20.000 ?
 
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