Annuity (i) You want to purchase a Honda Civic, but you choose to make an initial payment...

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Annuity
(i) You want to purchase a Honda Civic, but you choose to makean initial payment of $2000 and make monthly payments of $400. Ifthe monthly interest rate is 1% and you will make 48 monthlypayments for the Civic, what is the present value of your paymentscheme?
(ii) If you decide to buy a Chevy Malibu that is more expensive,you are informed that you have to make an initial payment of $2000and make 60 monthly payments of $400. Assume monthly interest rateis 1%. What is the present value of the payment scheme for buying aMalibu?

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Annuity(i) You want to purchase a Honda Civic, but you choose to makean initial payment of $2000 and make monthly payments of $400. Ifthe monthly interest rate is 1% and you will make 48 monthlypayments for the Civic, what is the present value of your paymentscheme?(ii) If you decide to buy a Chevy Malibu that is more expensive,you are informed that you have to make an initial payment of $2000and make 60 monthly payments of $400. Assume monthly interest rateis 1%. What is the present value of the payment scheme for buying aMalibu?