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May 1st, 2015, 09:42 AM   #1
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Double annuity

Hi!

I have this problem:

A car is purchased by 12 million by paying 48 monthly fee due to x each quarterly fee due and 400 000 each for four years.

If a rate of 44 % annual effective, determine the value of x .

Answer is $353 137.09

Usually, in problems I've seen, annuity is separated, but here is combined.
I tried solving by present and future value, but I always get a negative value, and really far from the answer.

Last edited by skipjack; May 4th, 2015 at 11:59 PM.
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May 4th, 2015, 09:34 PM   #2
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Quote:
Originally Posted by Yume View Post
A car is purchased by 12 million by paying 48 monthly fee due to x each quarterly fee due and 400 000 each for four years .

If a rate of 44 % annual effective, determine the value of x.

Answer is $353 137.09

Usually, in problems I've seen, annuity is separated, but here is combined.
I tried solving by present and future value, but I always get a negative value, and really far from the answer.
Hint:
1: calculate k : how much can be borrowed at the quarterly payment

2: calculate the monthly payment on 12000000 - k

Last edited by skipjack; May 5th, 2015 at 12:00 AM.
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