Someone Offers to Buy Your Car for Four,equal Annual Payments,beginning

question 85

Multiple Choice

Someone offers to buy your car for four,equal annual payments,beginning 2 years from today.If you think that the present value of your car is $9,000 and the interest rate is 10%,what is the minimum annual payment that you would accept?

• A) $2,839.24
• B) $3,435.48
• C) $3,123.16
• D) $2,250

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Definitions:

Linear Equations

Mathematical expressions that represent a straight line when plotted on a graph, typically in the form y = mx + b, where m is the slope and b is the y-intercept.

Linear Equations

Mathematical equations that make a straight line when graphed, typically in the form of y = mx + b.

Interest Calculation

The process of determining the amount of interest earned or paid over a given period of time.

Graphical Method

A visual way of solving problems or representing data, using graphs and charts to analyze and interpret information, often utilized in mathematics and economics.