contestada

Rhonda Miller wants to take out a 4 year loan to purchase a car. What type of computation would she use to calculate her monthly payments?A. Present value of a single amountB. Future value of a single amountC. Simple interestD. Present value of an annuityE. Future value of an annuity

Respuesta :

Answer: Option D is correct.

Rhonda Miller wants to assess how much using loan finance will cost in todays value. There are also finance lease facility available to fund the asset which means Rhonda must opt to the better option to save maximum. Calculating Present Value of annuity is the suitable option which helps in understanding how much this source of finance cost opposed to the use of finance lease.