Percent compounded annually


Problem:

The car dealership offers you no money down on a car. You may pay for the car in 4 equal annual end of the year payments of 10,352 each, with the first payment to be made one year from today. If the discount rate is 9.99 percent compounded annually what is the present value of the car payments. Explain in detail and please provide step by step solution.

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Finance Basics: Percent compounded annually
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