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The price of a LCD monitor is $1,649. Find the monthly payments commencing at time 0...

The price of a LCD monitor is $1,649. Find the monthly payments commencing at time 0 and continuing for 1.5 years for the purchase if the interest charged is 2% convertible monthly

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Answer #1

Monthly Payment commencing at time 0 = $92.91

Note:

Monthly payment is found using 'PMT' excel function as below

=pmt(rate,nper,pv,fv,type) where

rate = monthly interest rate = 2%/12 = 0.167%

nper = number of months = 1.5*12 = 18

pv = Price = $1,649

fv = 0

type = 1 (since the payment commences at time 0, it represents making payment beginning of the period)

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