Christie is buying a new car today and is paying a $500 cash down payment. She will finance the balance at 6.3 percent interest. Her loan requires 36 equal monthly payments of $450 each with the first payment due 30 days from today. Which one of the following statements is correct concerning this purchase?

A. The present value of the car is equal to $500 + (36 × $450).B. The $500 is the present value of the purchase. C. The car loan is an annuity due. D. To compute the initial loan amount, you must use a monthly interest rate. E. The future value of the loan is equal to 36 × $450.

To compute the initial loan amount, you must use a monthly interest rate

Explanation:

Since Christie would pay the balance at 6.3 percent interest, to calculate the initial loan amount, you must use a monthly interest rate.

The car loan is not an annuity due since the payment is not made at the beginning instead it is made after 30 days therefore it is an ordinary annuity. Annuity due requires repeated payment at the beginning of each period.

oh my god you are going so many marks marks i don't want to give you answers sorry

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi