00:01
A car has been bought with a down payment of $300 ,000 and at the end of each month for three years, that means in 36 terms or periods, at the end of each month, 2000, an installment of an installment of $20 ,000 has been paid to repay a loan in three years for the car.
00:37
And the compound interest rate is given as 12 % per year now if it is a payment are done monthly then monthly interest rate is given by r equal to 1 % as there are 12 months now suppose we have to find the present cash price of the car the present cash price now how to find this to find this we have to find the present value of this 36 installments of $20 ,000 now how to find the installments the formula that gives is present value p is given by x times 1 minus 1 plus r by hundred full to the power minus n by r by 100 where x p is the present price or present value x are the value of install which is given over k time periods or k periods sorry n is the number of periods over which the installments are done and r is the interest rate per period now we can see the installments done here is 20 ,000 and there are three years 12 months so there are 36 periods or 36 periods or 36 terms so in the value of n will be 36 and our the interest rate per period is actually 1 % per month we'll substitute those values to find the present value of this installment so this is given by 20 ,000 times 1 minus 1 plus 1 by 100 to the power minus 36 by 100 which is equal to which is equal to given by by 6002 ,000 and 150 .10.
03:07
So this is the present value of the installments of $20 ,000 over 36 terms.
03:12
Adding the down payment with this of 300 ,000 will get the present value of the present cash price of the car as 90200 ,000 150 .10 .00 .00 ,000.
03:33
902 ,150 .10.
03:37
In the second part, a room has been rented for $18 ,000 per month and for three years...