Question

When buying a luxury truck, three documents are signed, each one

for $150,000.00, with expiration in one, two and three months.
Instead, it is proposed to make two equal payments, the first in
one mon

Answer 1

To make two equal payments for a luxury truck, you can calculate the present values of the payments using an interest rate of 5% per month. The first payment should be approximately $142,857.14 and the second payment should be approximately $136,054.42.

Step-by-step explanation:

When buying a luxury truck, three documents are signed, each one for $150,000.00, with expiration in one, two and three months. Instead, it is proposed to make two equal payments, the first in one month and the second in two months.

To calculate the amount of each payment, we can divide the total cost of the luxury truck ($150,000 x 3 = $450,000) by the sum of the present values of the two payments. The present value of a future payment can be calculated using the formula:

Present Value = Future Value / (1 + interest rate)time period

Let's assume an interest rate of 5% per month. Using this formula, we can calculate the present values of the two payments:

Therefore, the two equal payments should be approximately $142,857.14 and $136,054.42.