Answered

Get clear, concise, and accurate answers to your questions on IDNLearn.com. Join our community to receive timely and reliable responses to your questions from knowledgeable professionals.

Ashton has an offer to buy an item with a sticker price of [tex]$\$ 4900$[/tex] by paying [tex]$\[tex]$ 140$[/tex][/tex] a month for 48 months. Which of these groups of values plugged into the TVM Solver of a graphing calculator will give him the correct answer for the interest rate being offered?

A. [tex]N = 48[/tex]; [tex]I\% = ?[/tex]; [tex]PV = -4900[/tex]; [tex]PMT = 140[/tex]; [tex]FV = 0[/tex]; [tex]P/Y = 12[/tex]; [tex]C/Y = 12[/tex]; [tex]PMT: END[/tex]
B. [tex]N = 48[/tex]; [tex]I\% = ?[/tex]; [tex]PV = 0[/tex]; [tex]PMT = -140[/tex]; [tex]FV = 4900[/tex]; [tex]P/Y = 12[/tex]; [tex]C/Y = 12[/tex]; [tex]PMT: END[/tex]
C. [tex]N = 48[/tex]; [tex]I\% = ?[/tex]; [tex]PV = -4900[/tex]; [tex]PMT = 0[/tex]; [tex]FV = 6720[/tex]; [tex]P/Y = 12[/tex]; [tex]C/Y = 12[/tex]; [tex]PMT: END[/tex]
D. [tex]N = 48[/tex]; [tex]I\% = ?[/tex]; [tex]PV = 0[/tex]; [tex]PMT = -140[/tex]; [tex]FV = 4900[/tex]; [tex]P/Y = 12[/tex]; [tex]C/Y = 12[/tex]; [tex]PMT: END[/tex]

Sagot :

GinnyAnsweridn
In order to identify the correct group of values to input into the TVM (Time Value of Money) solver of a graphing calculator, let's break down the problem step-by-step:

1. Understanding the Terms and Definitions:
- N: Total number of payments.
- I%: Interest rate per period.
- PV: Present Value (the current amount of money, which in this case is the loan amount).
- PMT: Payment per period (monthly payment).
- FV: Future Value (the amount of money expected in the future).
- P/Y: Payments per year.
- C/Y: Compounding periods per year.
- PMT: END or BGN: When the payment is made (at the end or beginning of each period).

2. Details of Ashton's Offer:
- Sticker price of the item: \[tex]$4900. - Monthly payment: \$[/tex]140.
- Duration: 48 months.

3. Calculating Total Amount Paid:
[tex]\[ \text{Total amount paid} = 140 \, \text{per month} \times 48 \, \text{months} = 6720 \, \text{dollars} \][/tex]

4. TVM Values:
- N (Total number of payments): [tex]\(48\)[/tex] (since payments are monthly for 48 months).
- PV (Present Value): [tex]\(-4900\)[/tex] (it is a liability, hence negative).
- PMT (Payment per month): [tex]\(\$140\)[/tex] (monthly payment).
- FV (Future Value): [tex]\(6720\)[/tex] (the total amount paid by the end of the term).
- P/Y (Payments per Year): [tex]\(12\)[/tex] (monthly payments, so 12 payments per year).
- C/Y (Compounding per Year): [tex]\(12\)[/tex] (interest compounded monthly).

5. Correct Option Analysis:
- Let's match the options with the values we need:
- Option A: Doesn't make sense as PMT and FV are not aligned with the problem details.
- Option B: Correctly has [tex]\( N = 48 \)[/tex], [tex]\( PV = -4900 \)[/tex], [tex]\( PMT = 140 \)[/tex], [tex]\( FV = 6720 \)[/tex], [tex]\( P/Y = 1 \)[/tex], [tex]\( C/Y = 12 \)[/tex], and payments at the end of the period.
- Option C and D: Have incorrect arrangements and values.

Given the detailed breakdown of Ashton's payment plan and the correct TVM solver values, Option B is the correct input group for solving the interest rate being offered.

So, the correct answer is:
[tex]\[ \boxed{\text{B}} \][/tex]
We appreciate your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. IDNLearn.com is committed to providing the best answers. Thank you for visiting, and see you next time for more solutions.