My Math Forum Double annuity

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 May 1st, 2015, 10:42 AM #1 Newbie   Joined: May 2015 From: Colombia Posts: 1 Thanks: 0 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 5th, 2015 at 12:59 AM. May 4th, 2015, 10:34 PM #2 Math Team Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 13,796 Thanks: 970 Quote:  Originally Posted by Yume 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 01:00 AM.

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