Present value.
A? smooth-talking used-car salesman who smiles considerably is offering you a great deal on a? "pre-owned" car. He? says, "For only 5 annual payments of ?$2,600?, this beautiful 1998 Honda Civic can be? yours." If you can borrow money at 9%, what is the price of this? car? Assume the payment is made at the end of each year.
If you can borrow money at 9?%, what is the price of this? car?
?$_____?(Round to the nearest? cent.)