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Uniform Series Problem

  1. Jun 4, 2012 #1
    Penelope wants to buy a car that is worth $43,195 by making a $4300 down payment and arranging a four-year lease
    that calls for monthly payments in advance, interest of 2.91 percent compounded monthly, and a buyout payment of
    $20,000 at the end of the lease. Calculate the amount of the monthly lease payment Penelope must make.


    So what I thought of doing is

    I subtract

    43195 - 4300 - PRESENTVALUE OF (20000) = A[1-(((1+(0.0291/12))^-48))/]

    PRESENTVALUE OF (20000) = 20000/((1+(0.0291/12))^48) = 17804.89

    I get A = 465,

    Im not sure if this is right, the solution saids 464.85, I carried all my decimals in my calculations as well.
     
  2. jcsd
  3. Jun 7, 2012 #2

    vela

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    Your equation seems to be missing some factors.

    My calculations come up with 464.85. Without seeing the details of your calculation, it's impossible to say what went wrong.
     
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